QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended December 31, 2014

OR

¨

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from
to
.

Commission file number 001-32845

(Exact Name of Registrant as Specified in its Charter)

Delaware

32-0163571

(State or Other Jurisdiction of

Incorporation or Organization)

(I.R.S. Employer

Identification No.)

39 East Union Street

Pasadena, CA 91103

(Address of Principal Executive Offices)

(626) 584-9722

(Registrants Telephone Number, Including Area Code)

Indicate by check whether the registrant: (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act
during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such
files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See definition of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.

Large accelerated filer

¨

Accelerated filer

¨

Non-accelerated filer

¨ (Do not check if a smaller reporting company)

Smaller reporting company

x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act): Yes ¨ No x

State the number of shares outstanding of each of the issuers classes of common stock, as of the latest practicable date: 25,848,919
shares outstanding as of February 6, 2015.

Interest expense (includes ineffective portion of cash flow hedge reclassifications from AOCI of an unrealized gain (loss) of $188 and
$158 in the quarter and six months ended December 31, 2013 and $(5) and $(11) in the quarter and six months ended December 31, 2014, respectively)

(2,334

)

(5,501

)

(4,726

)

(10,827

)

Foreign currency exchange gain (loss) and other

56

(357

)

(549

)

155

(2,267

)

(5,848

)

(5,252

)

(10,648

)

Income before provision for income taxes

7,873

11,865

11,656

22,533

Provision for income taxes (includes provision (benefit) from AOCI reclassifications of $79 and $66 in the quarter and six months ended
December 31, 2013 and $(2) and $(4) in the quarter and six months ended December 31, 2014, respectively)

3,291

4,746

4,872

9,013

Net income

4,582

7,119

6,784

13,520

Preferred stock dividends

(922

)

(922

)

(1,675

)

(1,844

)

Noncontrolling interests

(2,037

)

(1,606

)

(3,084

)

(3,367

)

Net income attributable to common stockholders

$

1,623

$

4,591

$

2,025

$

8,309

Net income per common share:

Basic

$

0.07

$

0.18

$

0.08

$

0.32

Diluted

0.07

0.17

0.08

0.31

Weighted average shares outstanding:

Basic

24,342,102

25,786,135

24,334,977

25,718,462

Diluted

24,986,979

26,684,968

24,979,854

26,617,295

The accompanying notes are an integral part of these condensed consolidated financial statements.

Fair value change in derivative, net of ineffective portion of cash flow hedge reclassifications to the statement of operations of an
unrealized gain (loss) of $188 and $158 in the quarter and six months ended December 31, 2013 and $(5) and $(11) in the quarter and six months ended December 31, 2014, respectively (which includes reclassifications to the statement of
operations of the related income tax provision (benefit) of $79 and $66 in the quarter and six months ended December 31, 2013 and $(2) and $(4) in the quarter and six months ended December 31 2014, respectively); and net of income tax
effect of $(37) and $(7) in the quarter and six months ended December 31, 2013 and $84 and $141 in the quarter and six months ended December 31, 2014, respectively

85

(181

)

17

(308

)

Cumulative translation adjustment

(6,010

)

(7,380

)

(2,540

)

(18,986

)

Total comprehensive income (loss)

(1,343

)

(442

)

4,261

(5,774

)

Allocated to noncontrolling interests

855

1,806

(1,903

)

5,895

Comprehensive income (loss) allocable to General Finance Corporation stockholders

$

(488

)

$

1,364

$

2,358

$

121

The accompanying notes are an integral part of these condensed consolidated financial statements.

The Company issued common stock of $156 as a part of the consideration for a business acquisition during the
six months ended December 31, 2014 (see Note 4), and included holdback amounts totaling $1,126 and $3,196 as part of the consideration for business acquisitions during the six months ended December 31, 2013 and 2014, respectively.

The accompanying notes are an integral part of these condensed consolidated financial statements.

General Finance Corporation (GFN) was incorporated in Delaware in October 2005. References to the
Company in these Notes are to GFN and its consolidated subsidiaries. These subsidiaries include GFN U.S. Australasia Holdings, Inc., a Delaware corporation (GFN U.S.); GFN North America Leasing Corporation, a Delaware
corporation (GFNNA Leasing); GFN North America Corp., a Delaware corporation (GFNNA); GFN Realty Company, LLC, a Delaware limited liability company (GFNRC); GFN Manufacturing Corporation, a Delaware corporation
(GFNMC), and its subsidiary, Southern Frac, LLC, a Texas limited liability company (collectively Southern Frac); Royal Wolf Holdings Limited, an Australian corporation publicly traded on the Australian Securities Exchange
(RWH), and its Australian and New Zealand subsidiaries (collectively, Royal Wolf); Pac-Van, Inc., an Indiana corporation, and its Canadian subsidiary, PV Acquisition Corp., an Alberta corporation (collectively
Pac-Van); and Lone Star Tank Rental Inc., a Delaware corporation (Lone Star).

The Company does business in three
distinct, but related industries, mobile storage, modular space and liquid containment (which is collectively referred to as the portable services industry), in two geographic areas; the Asia-Pacific (or Pan-Pacific) area, consisting of
Royal Wolf (which leases and sells storage containers, portable container buildings and freight containers in Australia and New Zealand) and North America, consisting of Pac-Van (which leases and sells storage, office and portable liquid storage
tank containers, modular buildings and mobile offices) and Lone Star (which leases portable liquid storage tank containers and containment products, as well as provides certain fluid management services, to the oil and gas industry in the Permian
and Eagle Ford basins of Texas), which are combined to form our North American leasing operations, and Southern Frac (which manufactures portable liquid storage tank containers).

On May 31, 2011, the Company completed an initial public offering (IPO) in Australia of a noncontrolling interest in RWH. A
total of 50,000,000 shares of capital stock were issued to the Australian market and an additional 188,526 shares were issued to the non-employee members of the RWH Board of Directors, the RWH chief executive officer and the RWH chief financial
officer. At the IPO date and through December 31, 2014, GFN U.S. owned a direct (and the Company an indirect) majority interest of over 50% of Royal Wolf.

Note 2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with United States generally accepted
accounting principles (U.S. GAAP) applicable to interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by
U.S. GAAP for complete financial statements, although the Condensed Consolidated Balance Sheet at June 30, 2014 was derived from the audited Consolidated Balance Sheet at that date. In the opinion of management, all adjustments (which include
all significant normal and recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for all periods presented have been made. The accompanying results of operations are not necessarily
indicative of the operating results that may be expected for the entire fiscal year ending June 30, 2015. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and
accompanying notes thereto of the Company, which are included in the Companys Annual Report on Form 10-K for the fiscal year ended June 30, 2014 filed with the Securities and Exchange Commission (SEC).

Unless otherwise indicated, references to FY 2014 and FY 2015 are to the six months ended December 31, 2013 and
2014, respectively.

The FY 2014 segment information in Note 11 has been reclassified to reflect the current segment presentation.

Principles of Consolidation

The
condensed consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated.

Foreign Currency Translation

The
Companys functional currencies for its foreign operations are the respective local currencies, the Australian (AUS) and New Zealand (NZ) dollars in the Asia-Pacific area and the Canadian (C) dollar in North
America. All adjustments resulting from the translation of the accompanying condensed consolidated financial statements from the functional currency into reporting currency are recorded as a component of stockholders equity in accordance with
Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 830, Foreign Currency Matters. All assets and liabilities are translated at the rates in effect at the balance sheet dates; and
revenues, expenses, gains and losses are translated using the average exchange rates during the periods.

Transactions in foreign currencies are translated at the foreign exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the
balance sheet date are translated to the functional currency at the foreign exchange rate prevailing at that date. Foreign exchange differences arising on translation are recognized in the statement of operations. Non-monetary assets and liabilities
that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are
translated to the functional currency at foreign exchange rates prevailing at the dates the fair value was determined.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes include assumptions used in assigning value to identifiable intangible assets at
the acquisition date, the assessment for impairment of goodwill, the assessment for impairment of other intangible assets, the allowance for doubtful accounts, share-based compensation expense, residual value of the lease fleet and deferred tax
assets and liabilities. Assumptions and factors used in the estimates are evaluated on an annual basis or whenever events or changes in circumstances indicate that the previous assumptions and factors have changed. The results of the analysis could
result in adjustments to estimates.

Inventories

Inventories are stated at the lower of cost or fair value (net realizable value) and consist of primarily finished goods for containers,
modular buildings and mobile offices held for sale or lease; as well as raw materials, work in-process and finished goods of manufactured portable liquid storage tank containers. Costs for leasing operations are assigned to individual items on the
basis of specific identification and include expenditures incurred in acquiring the inventories and bringing them to their existing condition and location; while costs for manufactured units are determined using the first-in, first-out method. Net
realizable value is the estimated selling price in the ordinary course of business. Expenses of marketing, selling and distribution to customers, as well as costs of completion, are estimated and are deducted from the estimated selling price to
establish net realizable value. Inventories are comprised of the following (in thousands):

June 30,

December 31,

2014

2014

Finished goods

$

24,157

$

36,455

Work in progress

2,011

1,942

Raw materials

1,234

3,496

$

27,402

$

41,893

Property, plant and equipment consist of the following (in thousands):

EstimatedUseful Life

June 30,

December 31,

2014

2014

Land



$

2,423

$

9,019

Building and improvements

10  40 years

4,608

6,655

Transportation and plant equipment (including capital lease assets)

3  20 years

34,934

37,021

Furniture, fixtures and office equipment

3  10 years

7,286

7,773

Construction in-process

134



49,385

60,468

Less accumulated depreciation and amortization

(18,771

)

(20,318

)

$

30,614

$

40,150

Lease Fleet

The Company has a fleet of storage, portable building, office and portable liquid storage tank containers, mobile offices, modular buildings
and steps that it primarily leases to customers under operating lease agreements with varying terms. The value of the lease fleet (or lease or rental equipment) is recorded at cost and depreciated on the straight-line basis over the estimated useful
life (5 - 20 years), after the date the units are put in service, down to their estimated residual values (up to 70% of cost). In the opinion of management, estimated residual values are at or below net realizable values. The Company periodically
reviews these depreciation

policies in light of various factors, including the practices of the larger competitors in the industry, and its own historical experience. Costs incurred on lease fleet units subsequent to
initial acquisition are capitalized when it is probable that future economic benefits in excess of the originally assessed performance will result; otherwise, they are expensed as incurred. At June 30, 2014 and December 31, 2014, the gross
costs of the lease fleet were $453,362,000 and $479,893,000, respectively.

Units in the lease fleet are also available for sale. The cost
of sales of a unit in the lease fleet is recognized at the carrying amount at the date of sale.

Income Taxes

The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are
recorded for temporary differences between the financial reporting basis and income tax basis of assets and liabilities at the balance sheet date multiplied by the applicable tax rates. Valuation allowances are established when necessary to reduce
deferred tax assets to the amount expected to be realized. Income tax expense is recorded for the amount of income tax payable or refundable for the period increased or decreased by the change in deferred tax assets and liabilities during the
period. The Company files U.S. Federal tax returns, multiple U.S. state (and state franchise) tax returns and Australian, New Zealand and Canadian tax returns. For U.S. Federal tax purposes, all periods subsequent to June 30, 2008 are subject
to examination by the U.S. Internal Revenue Service (IRS) and, for U.S. state tax purposes, with few exceptions, all periods subsequent to June 30, 2007 are subject to examination by the respective states taxation
authorities. Generally, periods subsequent to June 30, 2008 are subject to examination by the respective taxation authorities in Australia, New Zealand and Canada. The Company believes that its income tax filing positions and deductions
would be sustained on audit and does not anticipate any adjustments that would result in a material change. Therefore, no reserves for uncertain income tax positions have been recorded. In addition, the Company does not anticipate that the total
amount of unrecognized tax benefit related to any particular tax position will change significantly within the next 12 months.

The
Companys policy for recording interest and penalties, if any, will be to record such items as a component of income taxes.

Net Income per Common
Share

Basic net income per common share is computed by dividing net income attributable to common stockholders by the weighted-average
number of shares of common stock outstanding during the periods. Diluted net income per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common
stock or resulted in the issuance of common stock that then shared in the earnings of the Company. The potential dilutive securities (common stock equivalents) the Company had outstanding were warrants and stock options. The following is a
reconciliation of weighted average shares outstanding used in calculating earnings per common share:

Quarter Ended December 31,

Six Months Ended December 31,

2013

2014

2013

2014

Basic

24,342,102

25,786,135

24,334,977

25,718,462

Assumed exercise of stock options

644,877

898,833

644,877

898,833

Diluted

24,986,979

26,684,968

24,979,854

26,617,295

Potential common stock equivalents totaling 1,507,424 for both the quarter ended December 31, 2013 and FY
2014 and 1,027,061 for both the quarter ended December 31, 2014 and FY 2015 have been excluded from the computation of diluted earnings per share because the effect is anti-dilutive.

Recently Issued Accounting Pronouncements

Previously, in August 2010, the FASB, as result of a joint project with the International Accounting Standards Board (IASB) to
simplify lease accounting and improve the quality of and comparability of financial information for users, published proposed standards that would change the accounting and financial reporting for both lessee and lessor under ASC Topic 840,
Leases. Since then, the FASB and IASB have been deliberating submitted comments about their 2010 proposals and other feedback from constituents. On May 16, 2013, both the FASB and the IASB issued nearly identical exposure drafts that
retained the most significant change to lease accounting rules from the 2010 proposed standards, the elimination of the concept of off-balance sheet treatment for operating leases for lessees for the vast majority of lease contracts.
However, the 2013 exposure drafts include significant modifications, among them the establishment of two types of lease contracts for both lessees and lessors. Instead of capital and operating leases, the proposed rules create two types of leases
(both similar to capital leases for lessees), which the FASB and IASB refer to as Type A and Type B. In addition, the revised exposure drafts seek to correct issues, noted by many commenters, related

to the pattern and classification of expense recognition as well as the definition of lease term and the treatment of variable lease payments under the 2010 proposed standards. The
Company believes that the final standards, if issued in substantially the same form as the revised exposure drafts, would have a material effect in the presentation of its consolidated financial position and results of operations.

In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers:
Topic 606. ASU 2014-09 completes the joint effort by the FASB and IASB to improve financial reporting by creating common revenue recognition guidance for U.S. GAAP and International Financial Reporting Standards (IFRS). ASU
2014-09 applies to all companies that enter into contracts with customers to transfer goods or services. ASU 2014-09 is effective for public entities for interim and annual reporting periods beginning after December 15, 2016. Early application
is not permitted and entities have the choice to apply ASU 2014-09 either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying ASU 2014-09 at the date of initial application and not adjusting
comparative information. The Company is currently evaluating the requirements of ASU 2014-09 and has not yet determined its impact on its consolidated financial statements.

In June 2014, the FASB issued ASU No. 2014-12, Compensation  Stock Compensation (Topic 718) Accounting for Share-Based
Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Services Period (ASU 2014-12). The amendments in ASU 2014-12 provide guidance for determining compensation cost under specific circumstances
when an employee is eligible to vest in an award regardless of whether the employee is rendering service on the date the performance target is achieved. ASU 2014-12 becomes effective for annual and interim periods beginning after December 15,
2015 with early adoption permitted. The Company is currently evaluating the effects of ASU 2014-12 on its financial statements and disclosures, if any.

In August 2014, the FASB has issued ASU No. 2014-15, Presentation of Financial StatementsGoing Concern (Subtopic 205-40):
Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern. ASU 2014-15 provides guidance as to managements responsibility to evaluate whether there is substantial doubt about an organizations ability
to continue as a going concern and to provide related footnote disclosures. Under U.S.GAAP, financial statements are prepared under the presumption that the reporting organization will continue to operate as a going concern, except in limited
circumstances. Financial reporting under this presumption is commonly referred to as the going concern basis of accounting. The going concern basis of accounting is critical to financial reporting because it establishes the fundamental basis for
measuring and classifying assets and liabilities. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Company does not believe that ASU 2014-15 will have
a material effect in the presentation of its consolidated financial statements.

In November 2014, the FASB issued ASU No. 2014-16,
Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share is More Akin to Debt or to Equity. ASU No. 2014-16 clarifies that an entity must take into account
all relevant terms and features when reviewing the nature of the host contract. Additionally, ASU 2014-16 states that no one term or feature would define the host contracts economic characteristics and risks. Instead, the economic
characteristics and risks of the hybrid financial instrument as a whole would determine the nature of the host contract. If the embedded feature meets the definition of a derivative and is not considered clearly and closely related to the host
instrument, then the embedded feature must be bifurcated from the host instrument and accounted for as a derivative, unless certain exception criteria are met. In regard to reviewing the nature of a host contract, an entity should evaluate the
substance of the applicable terms and features when deciding how to assess those terms and features. Particularly, an entitys review should consider characteristics of the terms and features, circumstances in which the hybrid financial
instrument was issued or attained and possible outcomes of the hybrid financial instrument, along with the likelihood of such outcomes. ASU 2014-16 will be effective for fiscal years, and interim periods within, starting after December 15,
2015, with early adoption is allowed permitted. The Company does not believe that ASU 2014-16 will have a material effect in the presentation of its consolidated financial statements.

In November 2014, the FASB issued ASU No. 2014-17, Business Combinations (Topic 805): Pushdown Accounting. ASU 2014-17 allows an
acquired entity to elect to apply pushdown accounting in its separate financial statements on a change-in-control event. The acquired entity elects whether to apply pushdown accounting individually for each change-in-control event, and may apply
pushdown accounting during the reporting period in which the change-in-control event occurs. To facilitate transition to ASU 2014-17, the SEC issued Staff Accounting Bulletin No. 115, which rescinds SAB Topic 5.J, New Basis of Accounting
Required in Certain Circumstances and aligns SEC guidance with ASU 2014-17. ASU 2014-17 was effective on November 18, 2014 and its adoption did not have a material effect in the presentation of the Companys consolidated financial
statements.

Upon
issuance of shares of preferred stock, the Company records the liquidation value as the preferred equity in the consolidated balance sheet, with any underwriting discount and issuance or offering costs recorded as a reduction in additional paid-in
capital.

Series A and B Preferred Stock

The Company conducted private placements of Series A 12.5% Cumulative Preferred Stock, par value $0.0001 per share and liquidation preference
of $50 per share (Series A Preferred Stock); and Series B 8% Cumulative Preferred Stock, par value of $0.0001 per share and liquidation value of $1,000 per share (Series B Preferred Stock). The Series B Preferred Stock is
offered primarily in connection with business combinations. In connection with a public offering of a new series of preferred stock, the Company redeemed the Series A Preferred Stock (see below) and, at June 30, 2014 and December 31, 2014,
the Company had outstanding 100 shares of Series B Preferred Stock in Equity totaling $100,000.

The Series B Preferred Stock is not
convertible into GFN common stock, has no voting rights, except as required by Delaware law, and is redeemable after February 1, 2014; at which time it may be redeemed at any time, in whole or in part, at the Companys option. Holders
of the Series B Preferred Stock are entitled to receive, when declared by the Companys Board of Directors, annual dividends payable quarterly in arrears on the 31st day of January, July and
October and on the 30th day of April of each year. In the event of any liquidation or winding up of the Company, the holders of the Series B Preferred Stock will have preference to holders of
common stock.

Series C Preferred Stock

On May 17, 2013, the Company completed a public offering of 350,000 shares of 9.00% Series C Cumulative Redeemable Perpetual Preferred
Stock (the Series C Preferred Stock), liquidation preference $100.00 per share, and on May 24, 2013, the underwriters exercised their overallotment option to purchase an additional 50,000 shares. Proceeds from the offering totaled
$37,500,000, after deducting the underwriting discount of $2,000,000 and offering costs of $500,000. The Company used $36,000,000 of the net proceeds to reduce indebtedness at Pac-Van under its senior credit facility, pursuant to the requirement
that at least 80% of the gross proceeds, or $32,000,000, be used for that purpose in order to permit the payment of intercompany dividends to GFN to fund any dividends declared on the Series C Preferred Stock (see Note 5) and also used $1,295,000,
plus accrued dividends, of the net proceeds to redeem the 25,900 shares of the Series A Preferred Stock. Subsequently, the shares of the Series A Preferred Stock were cancelled.

Dividends on the Series C Preferred Stock are cumulative from the date of original issue and will be payable on the 31st day of each January, July and October and on the 30th day of April commencing July 31, 2013 when, as and if declared by the
Companys Board of Directors. Commencing on May 17, 2018, the Company may redeem, at its option, the Series C Preferred Shares, in whole or in part, at a cash redemption price of $100.00 per share, plus any accrued and unpaid dividends to,
but not including, the redemption date. Among other things, the Series C Preferred Shares have no stated maturity, are not subject to any sinking fund or other mandatory redemption, and are not convertible into or exchangeable for any of the
Companys other securities. Holders of the Series C Preferred Shares generally will have no voting rights, except for limited voting rights if dividends payable on the outstanding Series C Preferred Shares are in arrears for six or more
consecutive or non-consecutive quarters, and under certain other circumstances. If the Company fails to maintain the listing of the Series C Preferred Stock on the NASDAQ Stock Market (NASDAQ) for 30 days or more, the per annum dividend
rate will increase by an additional 2.00% per $100.00 stated liquidation value ($2.00 per annum per share) so long as the listing failure continues. In addition, in the event of any liquidation or winding up of the Company, the holders of the
Series C Preferred Stock will have preference to holders of common stock and are pair passu with the Series B Preferred Stock.

The Series
C Preferred Stock is listed on the NASDAQ under the symbol GFNCP.

Dividends

As of December 31, 2014, since issuance, dividends paid or payable totaled $65,000 for the Series B Preferred Stock.

As of December 31, 2014, since issuance, dividends paid totaled $5,320,000 for the Series C Preferred Stock.

The characterization of dividends to the recipients for Federal income tax purposes is made
based upon the earnings and profits of the Company, as defined by the Internal Revenue Code.

Royal Wolf Dividends

On August 13, 2013, the Board of Directors of Royal Wolf declared a dividend of AUS$0.05 per RWH share payable on October 3, 2013 to
shareholders of record on September 24, 2013. On August 12, 2014, the Board of Directors of Royal Wolf declared a dividend of AUS$0.055 per RWH share payable on October 3, 2014 to shareholders of record on September 18, 2014.

The consolidated financial statements reflect the amount of the dividends pertaining to the noncontrolling interest.

Note 4. Acquisitions

The Company can enhance its business and market share by entering into new markets in various ways, including starting up a
new location or acquiring a business consisting of container, modular unit or mobile office assets of another entity. An acquisition generally provides the Company with operations that enables it to at least cover existing overhead costs and is
preferable to a start-up or greenfield location. The businesses discussed below were acquired primarily to expand the Companys container lease fleet. The accompanying consolidated financial statements include the operations of the
acquired businesses from the dates of acquisition.

Lone Star Acquisition

On April 7, 2014, effective April 1, 2014, the Company, through GFNNA, acquired substantially all the assets and assumed certain
liabilities of the affiliated companies, Lone Star Tank Rental LP, based in Kermit, Texas, and KHM Rentals, LLC, based in Kenedy, Texas, for a total purchase consideration of $102,418,000. At the date of acquisition, the affiliated entities were
merged into the Companys indirect wholly-owned subsidiary, Lone Star. Also on April 7, 2014, the Company, primarily through Pac-Van and Lone Star, amended and restated the senior credit facility with a syndicate led by Wells Fargo Bank,
National Association (Wells Fargo) (see Note 5) as part of the financing for the acquisition. The purchase consideration consisted of (i) $75,000,000 in cash, (ii) $9,865,000 for 1,230,012 shares of GFN common stock (the number
of shares was agreed to based on a value of $8.13 per share, which was the average of the closing market price during the 15-day trading period ending April 2, 2014), (iii) $5,000,000 (discounted to $3,694,000 at the date of acquisition)
payable over five years for a non-compete agreement, (iv) $5,000,000 (discounted to $4,243,000 at the date of acquisition) payable over two years for a general indemnity holdback and (v) $10,481,000 (discounted to $9,616,000 at the date of
acquisition) payable during the fiscal year ending June 30, 2015 for working capital and other adjustments. The Company funded the cash portion of the consideration using $50,000,000 of availability under the senior credit facility with a
syndicate led by Wells Fargo, as amended, and $25,000,000 from a term loan with Credit Suisse AG, Singapore Branch (see Note 5).

The
accompanying consolidated statements of operations reflect the operating results of the Company following the date of acquisition of Lone Star and do not reflect the operating results of Lone Star prior to the acquisition date. The following
unaudited pro forma information for FY 2014 assumes the acquisition of Lone Star occurred at the beginning of the period presented (in thousands, except per share data):

Quarter Ended

Six Months Ended

December 31, 2013

(Unaudited)

Revenues

$

80,540

$

157,552

Net income

6,583

10,191

Net income attributable to common stockholders

3,624

5,543

Pro forma net income per common share:

Basic

$

0.14

$

0.21

Diluted

0.14

0.21

The pro forma results are not necessarily indicative of the results that may have actually occurred had the
acquisition taken place on the dates noted, or the future financial position or operating results of the Company. In addition, they do not consider any potential impacts of current market conditions on revenues, any staff or related expense
increases or efficiencies or asset dispositions. The pro

forma adjustments are based upon available information and assumptions that the Company believes are reasonable as a result of the application of the purchase method of accounting and consist
primarily of adjustments to depreciation and amortization of the fixed assets and identifiable intangible assets acquired, as well as to the interest expense on senior and other debt borrowings, along with the related income tax effect. The FY 2014
operating results of all other acquisitions prior to their respective dates of acquisition were not included in the pro forma results as they were not considered significant.

FY 2015 Acquisitions

On July 1,
2014, the Company, through Pac-Van, purchased the business of Black Angus Steel & Supply Co. and Bulkhead Express, LLC (Black Angus) for approximately $4,861,000, which included the issuance of 16,002 shares of GFN common stock
and holdback amounts of $1,468,000. Black Angus leases and sells containers out of two locations in Texas.

On October 20, 2014, the
Company, through Pac-Van, purchased the business of LongVANS, Inc. (LongVANS) for approximately $13,970,000, which included holdback amounts of $778,000. LongVANS designs, manufactures, leases and sells portable storage containers,
portable security containers and modular office trailers from two locations in Wisconsin.

On November 14, 2014, the Company, through
Pac-Van, purchased the business of A-One Storage, LLC (A-One) for approximately $8,332,000, which included holdback amounts of $803,000. A-One leases and sells storage containers, ground level offices (office containers), storage
trailers and wheeled office trailers in Columbus, Ohio.

On December 1, 2014, the Company, through Royal Wolf, purchased the business
of YS Container Services (YS Container) for approximately $1,560,000 (AUS$1,833,000), which included a holdback amount of $147,000 (AUS$172,000). YS Container primarily leases and sells containers in Christchurch, New Zealand.

The valuations and purchase accounting for the acquisitions in FY 2015 are still to be completed and are subject to change. The preliminary
allocation for the acquisitions in FY 2015 to tangible and intangible assets acquired and liabilities assumed based on their estimated fair market values was as follows (in thousands):

Goodwill recognized is attributable primarily to expected corporate synergies, the assembled workforce and
other factors. In FY 2015, the goodwill recognized in the Black Angus, LongVANS and A-One acquisitions is deductible for U.S. income tax purposes, but the goodwill recognized in the YS Container non-domestic acquisition is not.

The Company incurred approximately $64,000 and $148,000 and $93,000 and $149,000 during the quarter ended December 31, 2013 and FY 2014
and during the quarter ended December 31, 2014 and FY 2015, respectively, of incremental transaction costs associated with acquisition-related activity that were expensed as incurred and are included in selling and general expenses in the
accompanying consolidated statements of operations.

Effective May 8, 2014, Royal Wolf refinanced the Australia and New Zealand Banking Group Limited (ANZ)
senior credit facility, which was secured by substantially all of the assets of the Companys Australian and New Zealand subsidiaries to, among other things, increase the maximum borrowing capacity to $142,765,000 (AUS$175,000,000), add
Commonwealth Bank of Australia (CBA) through a common terms deed arrangement with ANZ and generally improve the financial covenants (the ANZ/CBA Credit Facility). Under the common deed arrangement of the ANZ/CBA Credit
Facility, ANZs proportionate share of the borrowing capacity is $85,659,000 (AUS$105,000,000) and CBAs proportionate share is $57,106,000 (AUS$70,000,000). The ANZ/CBA Credit Facility has $101,975,000 (AUS$125,000,000) maturing on
July 31, 2017 (Facility A), and $40,790,000 (AUS$50,000,000) maturing on July 31, 2019 (Facility B).

Borrowings under the
ANZ/CBA Credit Facility bear interest at the bank bill swap interest rate in Australia (BBSY) or New Zealand (BKBM), plus a margin of 1.10% - 1.85% per annum on the Facility A and 1.35% - 2.15% on the Facility B,
depending on the net debt leverage ratio (NDLR), as defined. The CBA proportionate share has a minimum margin that is 0.10% higher than the ANZ proportionate share. At December 31, 2014, the 30-day and 90-day BBSY and BKBM was 2.69%
and 2.82% and 3.69% and 3.73%, respectively.

The ANZ/CBA Credit Facility also includes a $2,447,400 (AUS$3,000,000) sub-facility to,
among other things, facilitate direct and global payments using electronic banking services. The ANZ/CBA Credit Facility, as amended, is subject to certain financial and other customary covenants, including, among other things, compliance with
specified interest coverage and net debt ratios based on earnings before interest, income taxes, impairment, depreciation and amortization and other non-operating costs and income (EBITDA) on a semi-annual basis and that borrowings may
not exceed a multiple of three times EBITDA, as defined.

At December 31, 2014, total borrowings and availability under the ANZ/CBA
Credit Facility totaled $110,875,000 (AUS$135,910,000) and $9,132,000 (AUS$11,194,000), respectively. Of the total borrowings, $100,781,000 (AUS$123,536,000) is under Facility A and $10,094,000 (AUS$12,374,000) is under Facility B.

The above amounts were translated based upon the exchange rate of one Australian dollar to $0.8158 U.S. dollar at December 31, 2014.

North American Leasing Senior Credit Facility

Effective February 7, 2014, Pac-Van amended its $120,000,000 facility led by Wells Fargo that also included HSBC Bank USA, NA
(HSBC), and the Private Bank and Trust Company to, among other things, increase the maximum borrowing capacity from $120,000,000 to $200,000,000 and add two new lenders (Capital One Business Credit Corp. and OneWest Bank N.A.) to the
syndicate (the Wells Fargo Credit Facility). Further, on April 7, 2014, in conjunction with the acquisition of Lone Star (see Note 4), and on May 23, 2014, the Wells Fargo Credit Facility was amended and restated to, among
other things, include Lone Star as a co-borrower and to allow for the funding of the interest requirements of the public offering of unsecured senior notes (see below). The Wells Fargo Credit Facility effectively not only finances the Companys
North American leasing operations, but also the funding requirements for the Series C Preferred Stock (see Note 3), the term loan with Credit Suisse AG, Singapore Branch (see below) and the public offering of unsecured senior notes.

The maximum amount of intercompany dividends that Pac-Van and Lone Star are allowed to pay in each fiscal year to GFN for the funding
requirements of GFNs senior and other debt and the Series C Preferred Stock are (a) the lesser of $5,000,000 for the Series C Preferred Stock or the amount equal to the dividend rate of the Series C Preferred Stock and its aggregate
liquidation preference and the actual amount of dividends required to be paid to the Series C Preferred Stock; (b) the lesser of $3,125,000 for the term loan with Credit Suisse AG, Singapore Branch or the actual annual interest to be paid; and
(c) $6,120,000 for the public offering of unsecured senior notes or the actual amount of annual interest required to be paid; provided that (i) the payment of such dividends does not cause a default or event of default; (ii) each of
Pac-Van and Lone Star is solvent; (iii) excess availability, as defined, is $5,000,000 or more under the Wells Fargo Credit Facility; and (iv) the fixed charge coverage ratio, as defined, will be greater than 1.25 to 1.00 and the dividends
are paid no earlier than ten business days prior to the date they are due.

Borrowings under the Wells Fargo Credit Facility accrue
interest, at the Companys option, either at the base rate, plus 0.5% and a range of 1.00% to 1.50%, or the LIBOR rate, plus 1.0% and a range of 2.50% to 3.00%; and, subject to certain conditions, the amount that may be borrowed may increase by
$20,000,000 to a maximum of $220,000,000. The Wells Fargo Credit Facility contains, among other things, certain financial covenants, including fixed charge coverage ratios, and other covenants, representations, warranties, indemnification
provisions, and events of default that are customary for senior secured credit facilities, including the

cessation of involvement of Ronald F. Valenta, the Companys chairman of the board and chief executive officer, in the operations and management of GFN, Pac-Van or Lone Star as a director or
officer. The Wells Fargo Credit Facility matures on September 7, 2017.

At December 31, 2014, borrowings and availability under
the Wells Fargo Credit Facility totaled $135,411,000 and $47,397,000, respectively.

Southern Frac Senior Credit Facility

Southern Frac has a senior credit facility with Wells Fargo, as amended, (Wells Fargo SF Credit Facility) that provides with
(i) a senior secured revolving line of credit under which Southern Frac may borrow, subject to the terms of a borrowing base, as defined, up to $12,000,000 with a three-year maturity; (ii) a combined $860,000 equipment and capital
expenditure term loan (the Restated Equipment Term Loan), which fully amortizes over 48 months commencing July 1, 2013; and (iii) a $1,500,000 term loan (the Term Loan B), which fully amortizes over 18 months,
commencing May 1, 2013. The Wells Fargo SF Credit Facility contains, among other things, certain financial covenants, including fixed charge coverage ratios, and other covenants, representations, warranties, indemnification provisions, and
events of default that are customary for senior secured credit facilities; including events of default relating to a change of control of GFN, GFNMC and Southern Frac. Borrowings under the Wells Fargo SF Credit Facility will accrue interest
based on the three-month LIBOR, plus a margin equal to 3.5% for the revolving line of credit, 4.0% for the Restated Equipment Term Loan and 7.0% for the Term Loan B.

At December 31, 2014, borrowings outstanding and availability under the Wells Fargo SF Credit Facility totaled $1,491,000 and $4,608,000,
respectively.

Credit Suisse Term Loan

On March 31, 2014, the Company, at the corporate level, entered into a $25,000,000 facility agreement with Credit Suisse AG, Singapore
Branch (Credit Suisse Term Loan) as part of the financing for the acquisition of Lone Star (see Note 4) and, on April 3, 2014, the Company borrowed the $25,000,000 available to it. The Credit Suisse Term Loan provides that the
amount borrowed will bear interest at LIBOR plus 7.50% per year, will be payable quarterly, and that all principal and interest will mature two years from the date that the Company borrowed the $25,000,000. In addition, the Credit Suisse Term
Loan is secured by a first ranking pledge over all shares of RWH owned by GFN U.S., requires a certain coverage maintenance ratio in U.S. dollars based on the value of the RWH shares and, among other things, that an amount equal to six-months
interest be deposited in an interest reserve account pledged to secure repayment of all amounts borrowed.

8.125% Senior Notes

On June 18, 2014, the Company completed the sale of unsecured senior notes (the Senior Notes) in a public offering for an
aggregate principal amount of $72,000,000, which represented 100% of the principal amount and included the underwriters full exercise of their over-allotment option of $9,000,000. Net proceeds were $69,069,000, after deducting underwriting
discounts and offering costs of approximately $2,931,000. The Senior Notes were issued in minimum denominations of $25 and integral multiples of $25 in excess thereof and pursuant to the First Supplemental Indenture (the First Supplemental
Indenture) dated as of June 18, 2014 by and between the Company and Wells Fargo, as trustee (the Trustee). The First Supplemental Indenture supplements the Indenture entered into by and between the Company and the Trustee
dated as of June 18, 2014 (the Base Indenture and, together with the First Supplemental Indenture, the Indenture). The Senior Notes bear interest at the rate of 8.125% per annum, mature on July 31, 2021 and are
not subject to any sinking fund. Interest on the Senior Notes is payable quarterly in arrears on January 31, April 30, July 31 and October 31, commencing on July 31, 2014. The Company used $68,600,000 of the net
proceeds (plus an additional $4,000,000 of GFN corporate cash on hand) to reduce indebtedness at Pac-Van and Lone Star under the Wells Fargo Credit Facility, pursuant to the requirement that at least 80% of the gross proceeds, or $57,600,000, be
used for that purpose in order to permit the payment of intercompany dividends by Pac-Van and Lone Star to GFN to fund the interest requirements of the Senior Notes.

The Senior Notes rank equally in right of payment with all of the Companys existing and future unsecured senior debt and senior in right
of payment to all of its existing and future subordinated debt. The Senior Notes are effectively subordinated to any of the Companys existing and future secured debt, to the extent of the value of the assets securing such debt. The Senior
Notes are structurally subordinated to all existing and future liabilities of the Companys subsidiaries and are not guaranteed by any of the Companys subsidiaries.

The Company may, at its option, prior to July 31, 2017, redeem the Senior Notes in whole
or in part upon the payment of 100% of the principal amount of the Senior Notes being redeemed plus any additional amount required by the Indenture. In addition, the Company may from time to time redeem up to 35% of the aggregate outstanding
principal amount of the Senior Notes before July 31, 2017 with the net cash proceeds from certain equity offerings at a redemption price of 108.125% of the principal amount plus accrued and unpaid interest. If the Company sells certain of its
assets or experience specific kinds of changes in control, as defined, it must offer to purchase the Senior Notes.

The Company may, at
its option, at any time and from time to time, on or after July 31, 2017, redeem the Senior Notes in whole or in part. The Senior Notes will be redeemable at a redemption price initially equal to 106.094% of the principal amount of the Senior
Notes (and which declines on each year on July 31) plus accrued and unpaid interest to the date of redemption. On and after any redemption date, interest will cease to accrue on the redeemed Senior Notes.

The Indenture contains covenants which, among other things, limit the Companys ability to make certain payments, to pay dividends and to
incur additional indebtedness if the incurrence of such indebtedness would cause the companys consolidated fixed charge coverage ratio, as defined in the Indenture, to be below 2.0 to 1.0.

The Senior Notes are listed on the NASDAQ under the symbol GFNSL.

Other

Other debt totaled $13,298,000 at
December 31, 2014.

As of December 31, 2014, the Company was in compliance with the financial covenants under all its credit
facilities.

The weighted-average interest rate in the Asia-Pacific area was 5.7% and 5.4% in FY 2014 and FY 2015, respectively; which
does not include the effect of translation, interest rate swap contracts and options and the amortization of deferred financing costs. The weighted-average interest rate in North America was 3.8% and 5.5% in FY 2014 and FY 2015, respectively, which
does not include the effect of the amortization of deferred financing costs and accretion of interest.

Note 6. Financial Instruments

Fair Value Measurements

FASB ASC Topic 820, Fair Value Measurements and Disclosures, defines fair value as the price that would be received from selling an
asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or
liability. As a basis for considering such assumptions, FASB ASC Topic 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value, as follows:

Level 2 - Observable inputs, other than Level 1 inputs in active markets, that are observable either directly or indirectly; and

Level 3 - Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The Companys derivative instruments are not traded on a market exchange; therefore, the fair values are determined using valuation
models that include assumptions about yield curve at the reporting dates as well as counter-party credit risk. The assumptions are generally derived from market-observable data. The Company has consistently applied these calculation techniques to
all periods presented, which are considered Level 2.

Derivative instruments measured at fair value and their classification in the consolidated
balances sheets and statements of operations are as follows (in thousands):

Derivative - Fair Value (Level 2)

Type of Derivative Contract

Balance Sheet Classification

June 30, 2014

December 31, 2014

Swap Contracts and Options (Caps and Collars)

Trade payables and accrued liabilities

$

1,535

$

1,633

Forward-Exchange Contracts

Trade payables and accrued liabilities

230



Forward-Exchange Contracts

Trade and other receivables



546

Quarter EndedDecember 31,

Six Months EndedDecember 31,

Type of Derivative Contract

Statement of Operations

Classification

2013

2014

2013

2014

Swap Contracts and Options (Caps and Collars)

Unrealized gain (loss) included in interest expense

$

188

$

(5

)

$

158

$

(11

)

Forward-Exchange Contracts

Unrealized foreign currency exchange gain (loss) and other

400

(12

)

(298

)

778

Interest Rate Swap Contracts

The Companys exposure to market risk for changes in interest rates relates primarily to its senior and other debt obligations. The
Companys policy is to manage its interest expense by using a mix of fixed and variable rate debt.

To manage its exposure to
variable interest rates in a cost-efficient manner, the Company enters into interest rate swaps and interest rate options, in which the Company agrees to exchange, at specified intervals, the difference between fixed and variable interest amounts
calculated by reference to an agreed-upon notional principal amount. These swaps and options are designated to hedge changes in the interest rate of a portion of the outstanding borrowings in the Asia-Pacific area. The Company believes that
financial instruments designated as interest rate hedges were highly effective; however, prior to August 2012, documentation of such, as required by FASB ASC Topic 815, Derivatives and Hedging, did not exist. Therefore, all
movements in the fair values of these hedges prior to August 2012 were reported in the consolidated statements of operations in the periods in which fair values change. In August 2012, the Company entered into an interest swap contract that met
documentation requirements and, as such, it was designated as a cash flow hedge. This cash flow hedge was determined to be highly effective in FY 2014 and FY 2015 and, therefore, changes in the fair value of the effective portion were recorded in
accumulated other comprehensive income. The Company expects this derivative to remain effective during the remaining term of the swap; however, any changes in the portion of the hedge considered ineffective would be recorded in interest expense in
the consolidated statement of operations. In the quarter ended December 31, 2013 and FY 2014, the ineffective portion of this cash flow hedge recorded in interest expense was an unrealized gain of $188,000 and $158,000, respectively. In the
quarter ended December 31, 2014 and FY 2015, the ineffective portion of this cash flow hedge recorded in interest expense was an unrealized loss of $5,000 and $11,000, respectively.

The Companys interest rate derivative instruments are not traded on a market exchange;
therefore, the fair values are determined using valuation models which include assumptions about the interest rate yield curve at the reporting dates (Level 2 fair value measurement). As of June 30, 2014 and December 31, 2014, there was
one open interest rate swap contract that was designated as a cash flow hedge and matures in June 2017, as follows (dollars in thousands):

June 30, 2014

December 31, 2014

Swap

Option (Cap)

Swap

Option

Notional amounts

$

47,195

$



$

40,790

$



Fixed/Strike Rates

3.98

%



3.98

%



Floating Rates

2.72

%



2.69

%



Fair Value of Combined Contracts

$

(1,535

)

$



$

(1,633

)

$



Foreign Currency Risk

The Company has transactional currency exposures. Such exposure arises from sales or purchases in currencies other than the functional
currency. The currency giving rise to this risk is primarily U.S. dollars. Royal Wolf has a bank account denominated in U.S. dollars into which a small number of customers pay their debts. This is a natural hedge against fluctuations in the exchange
rate. The funds are then used to pay suppliers, avoiding the need to convert to Australian dollars. Royal Wolf uses forward currency and participating forward contracts to eliminate the currency exposures on the majority of its transactions
denominated in foreign currencies, either by transaction if the amount is significant, or on a general cash flow hedge basis. The forward currency and participating forward contracts are always in the same currency as the hedged item. The Company
believes that financial instruments designated as foreign currency hedges are highly effective. However documentation of such as required by ASC Topic 815 does not exist. Therefore, all movements in the fair values of these hedges are reported in
the statement of operations in the period in which fair values change. As of June 30, 2014, there were 58 open forward exchange contracts that mature between July 2014 and April 2015; and as of December 31, 2014, there were 67 open forward
exchange contracts that mature between January 2015 and September 2015, as follows (dollars in thousands):

The fair value of the Companys borrowings under the Senior Notes at June 30, 2014 was determined based on a Level 1 input and for
its senior credit facilities determined based on Level 3 inputs, including a search for debt issuances with maturities comparable to the Companys debt (Debt Issuances with Upcoming Call Dates), a comparison to a group of comparable
industry debt issuances (Industry Comparable Debt Issuances) and a study of credit (Credit Spread Analysis). Under the Debt Issuances with Upcoming Call Dates, the Company performed a Yield-to-Worse analysis on debt issuances
with call dates that were comparable to the maturity dates of the Companys borrowings. Under the Industry Comparable Debt Issuance method, the Company compared the debt facilities to several industry comparable debt issuances. This method
consisted of an analysis of the offering yields compared to the current yields on publicly traded debt securities. Under the Credit Spread Analysis, the Company first examined the implied credit spreads of the United States Federal Reserve. Based on
this analysis the Company was able to assess the credit market. The fair value of the Companys senior credit facilities as of June 30, 2014 was determined to be approximately $291,781,000. The Company also determined that the fair value
of its other debt of $12,199,000 at June 30, 2014 approximated or would not vary significantly from their carrying values. The Company believes that market conditions at December 31, 2014 have not changed significantly from June 30,
2014. Therefore, the proportion of the fair value to the carrying value of the Companys senior credit facilities and other debt at December 31, 2014 would not vary significantly from the proportion determined at June 30, 2014.

Effective January 31, 2008, the Company entered into a lease with an affiliate of Ronald F. Valenta for its corporate
headquarters in Pasadena, California. The rent is $7,393 per month, effective March 1, 2009, plus allocated charges for common area maintenance, real property taxes and insurance, for approximately 3,000 square feet of office space. The term of
the lease is five years, with two five-year renewal options, and the rent is adjusted yearly based on the consumer price index. On October 11, 2012, the Company exercised its option to renew the lease for an additional five-year term commencing
February 1, 2013. Rental payments were $27,000 in both the quarters ended December 31, 2013 and December 31, 2014, and $55,000 in both FY 2014 and FY 2015.

Effective October 1, 2008, the Company entered into a services agreement with an affiliate of Mr. Valenta for certain accounting,
administrative and secretarial services to be provided at the corporate offices and for certain operational, technical, sales and marketing services to be provided directly to the Companys operating subsidiaries. Charges for services rendered
at the corporate offices will be, until further notice, at $7,000 per month and charges for services rendered to the Companys subsidiaries will vary depending on the scope of services provided. The services agreement provides for, among other
things, mutual modifications to the scope of services and rates charged and automatically renews for successive one-year terms, unless terminated in writing by either party prior to the fiscal year end. Total charges to the Company at the corporate
office for services rendered under this agreement totaled $42,000 in FY 2014. The services agreement was terminated by the Company effective June 30, 2014.

Revenues at Pac-Van from affiliates of Mr. Valenta totaled $5,000 and $15,000 during the quarter ended December 31, 2013 and FY
2014, respectively. There were no revenues from affiliates of Mr. Valenta during FY 2015.

The premises of Pac-Vans Las Vegas
branch is owned by and leased from the acting branch manager through December 31, 2014, with the right for an additional two-year extension through December 31, 2016. On December 29, 2014, the Company extended the lease for the
additional two years. Rental payments on this lease totaled $30,000 during both the quarter ended December 31, 2013 and 2014 and $59,000 during both FY 2014 and FY 2015.

Note 8. Equity Plans

On August 29, 2006, the Board of Directors of the Company adopted the General Finance Corporation 2006 Stock Option
Plan (2006 Plan), which was approved and amended by stockholders on June 14, 2007 and December 11, 2008, respectively. Options granted and outstanding under the 2006 Plan are either incentive stock options under
Section 422 of the Internal Revenue Code of 1986, as amended, or so-called non-qualified options that are not intended to meet incentive stock option requirements. All options granted do not have a term in excess of ten years, and the exercise
price of any option is not less than the fair market value of the Companys common stock on the date of grant. After the adoption by the Board of Directors and upon the approval of the 2009 Stock Incentive Plan (2009 Plan) by the
stockholders (see below), the Company suspended any further grants under the 2006 Plan.

On September 21, 2009, the Board of
Directors of the Company adopted the 2009 Plan, which was approved by the stockholders at the Companys annual meeting on December 10, 2009. The 2009 Plan is an omnibus incentive plan permitting a variety of equity programs
designed to provide flexibility in implementing equity and cash awards, including incentive stock options, nonqualified stock options, restricted stock grants (non-vested equity shares), restricted stock units, stock appreciation rights,
performance stock, performance units and other stock-based awards. Participants in the 2009 Plan may be granted any one of the equity awards or any combination of them, as determined by the Board of Directors or the Compensation Committee. Upon the
approval of the 2009 Plan by the stockholders, the Company suspended further grants under the 2006 Plan (see above). Any stock options which are forfeited under the 2006 Plan will become available for grant under the 2009 Plan, but the total number
of shares available under the 2006 Plan and the 2009 Plan will not exceed the 2,500,000 shares reserved for grant under the 2006 Plan. After the adoption by the Board of Directors and upon the approval of the 2014 Stock Incentive Plan (the
2014 Plan) by the stockholders (see below), the Company suspended any further grants under the 2009 Plan.

On
September 11, 2014, the Board of Directors of the Company adopted the 2014 Plan, which was approved by the stockholders at the Companys annual meeting on December 4, 2014. The 2014 Plan is an omnibus incentive plan
permitting a variety of equity programs designed to provide flexibility in implementing equity and cash awards, including incentive stock options, nonqualified stock options, restricted stock grants (non-vested equity shares), restricted
stock units, stock appreciation rights,

performance stock, performance units and other stock-based awards. Participants in the 2014 Plan may be granted any one of the equity awards or any combination of them, as determined by the Board
of Directors or the Compensation Committee. Upon the approval of the 2014 Plan by the stockholders, the Company suspended further grants under the 2009 Plan. Any stock options which are forfeited under the 2006 Plan and 2009 Plan (collectively
the Predecessor Plans) will become available for grant under the 2014 Plan, but the total number of shares available under the 2014 Plan will not exceed the 1,500,000 shares reserved for grant under the 2014 Plan, plus any options which
were forfeited or are available for grant under the Predecessor Plans. If not sooner terminated by the Board of Directors, the 2014 Plan will expire on December 4, 2024, which is the tenth anniversary of the date it was approved by the
Companys stockholders, the 2006 Plan will expire on June 30, 2016 and the 2009 Plan will expire on December 10, 2019.

The
Predecessor Plans and the 2014 Plan are referred to collectively as the Stock Incentive Plan.

There have been no grants or
awards of restricted stock units, stock appreciation rights, performance stock or performance units under the Stock Incentive Plan. All grants to-date consist of incentive and non-qualified stock options that vest over a period of up to five years
(time-based), non-qualified stock options that vest over varying periods that are dependent on the attainment of certain defined EBITDA and other targets (performance-based) and non-vested equity shares. At December 31,
2014, 1,697,146 shares remain available for grant.

Since inception, the range of the fair value of the stock options granted (other than
to non-employee consultants) and the assumptions used are as follows:

Fair value of stock options

$0.81 - $0.00

Assumptions used:

Risk-free interest rate

1.19% - 4.8%

Expected life (in years)

7.5

Expected volatility

26.5% - 84.6%

Expected dividends



At December 31, 2014, the weighted-average fair value of the stock options granted to non-employee
consultants was $4.66, determined using the Black-Scholes option-pricing model using the following assumptions: a risk-free interest rate of 1.90% - 2.01%, an expected life of 7.44  8.45 years, an expected volatility of 70.1% and no
expected dividend.

A summary of the Companys stock option activity and related information for FY 2015 follows:

Number ofOptions(Shares)

Weighted-AverageExercisePrice

Weighted-AverageRemainingContractualTerm (Years)

Outstanding at June 30, 2014

2,152,820

$

5.03

Granted





Exercised

(126,758

)

2.28

Forfeited or expired

(100,168

)

4.08

Outstanding at December 31, 2014

1,925,894

$

5.26

5.0

Vested and expected to vest at December 31, 2014

1,925,894

$

5.26

5.0

Exercisable at December 31, 2014

1,455,102

$

5.58

4.3

At December 31, 2014, outstanding time-based options and performance-based options totaled 1,094,452 and
831,442, respectively. Also at that date, the Companys market price for its common stock was $9.86 per share, which was above the exercise prices of all of the outstanding stock options. As a result, the intrinsic value of the outstanding
stock options at that date was $8,862,479. Share-based compensation of $5,554,000 related to stock options has been recognized in the consolidated statements of operations, with a corresponding benefit to equity, from inception through
December 31, 2014. At that date, there remains $880,000 of unrecognized compensation expense to be recorded on a straight-line basis over the remaining weighted-average vesting period of 1.3 years.

A deduction is not allowed for U.S. income tax purposes with respect to non-qualified options
granted in the United States until the stock options are exercised or, with respect to incentive stock options issued in the United States, unless the optionee makes a disqualifying disposition of the underlying shares. The amount of any deduction
will be the difference between the fair value of the Companys common stock and the exercise price at the date of exercise. Accordingly, there is a deferred tax asset recorded for the U.S. tax effect of the financial statement expense recorded
related to stock option grants in the United States. The tax effect of the U.S. income tax deduction in excess of the financial statement expense, if any, will be recorded as an increase to additional paid-in capital.

On December 4, 2014, the Company granted a total of 27,370 non-vested equity shares to the five non-employees members of the
Companys Board of Directors at a value equal to the closing market price of the Companys common stock as of that date, or $9.86 per share, which vest one year from the date of grant. In FY 2015, 2,488 non-vested equity shares with a
grant date fair value of $9.25 per share were forfeited.

At December 31, 2014, there were 230,202 non-vested equity shares
outstanding that were granted to non-employee members of the Board of Directors, officers and key employees of the Company. Share-based compensation of $525,000 related to non-vested equity shares has been recognized in the consolidated statements
of operations, with a corresponding benefit to equity, from inception through December 31, 2014. At that date, there remains $958,000 of unrecognized compensation expense to be recorded on a straight-line basis over the remaining vesting period
of over approximately 0.16 years  2.00 years for the non-vested equity shares.

Royal Wolf Long Term Incentive Plan

In conjunction with the RWH IPO (see Note 1), Royal Wolf established the Royal Wolf Long Term Incentive Plan (the LTI Plan). Under
the LTI Plan, the RWH Board of Directors may grant, at its discretion, options, performance rights and/or restricted shares of RWH capital stock to Royal Wolf employees and executive directors. Vesting terms and conditions may be up to four years
and, generally, will be subject to performance criteria based primarily on enhancing shareholder returns using a number of key financial benchmarks, including EBITDA. In addition, unless the RWH Board determines otherwise, if an option, performance
right or restricted share has not lapsed or been forfeited earlier, it will terminate at the seventh anniversary from the date of grant.

It is intended that up to one percent of RWHs outstanding capital stock will be reserved for grant under the LTI Plan and a trust will
be established to hold RWH shares for this purpose. However, so long as the Company holds more than 50% of the outstanding shares of RWH capital stock, RWH shares reserved for grant under the LTI Plan are required to be purchased in the open market
unless the Company agrees otherwise. The LTI Plan, among other provisions, does not permit the transfer, sale, mortgage or encumbering of options, performance rights and restricted shares without the prior approval of the RWH Board. In the event of
a change of control, the RWH Board, at its discretion, will determine whether, and how many, unvested options, performance rights and restricted shares will vest. In addition, if, in the RWH Boards opinion, a participant acts fraudulently or
dishonestly or is in breach of his obligations to Royal Wolf, the RWH Board may deem any options, performance rights and restricted shares held by or reserved for the participant to have lapsed or been forfeited.

As of December 31, 2014, the Royal Wolf Board of Directors has granted, net of forfeitures, 1,706,000 performance rights to key
management personnel under the LTI Plan, of which 375,000 have been converted into RWH capital stock that were purchased by Royal Wolf in the open market. In FY 2014 and FY 2015, share-based compensation of $343,000 and $360,000, respectively,
related to the LTI Plan has been recognized in the consolidated statements of operations, with a corresponding benefit to equity.

Note 9. Commitments and Contingencies

The Company is not involved in any material lawsuits or claims arising out of the normal course of business. The nature of
its business is such that disputes can occasionally arise with employees, vendors (including suppliers and subcontractors) and customers over warranties, contract specifications and contract interpretations among other things. The Company assesses
these matters on a case-by-case basis as they arise. Reserves are established, as required, based on its assessment of its exposure. The Company has insurance policies to cover general liability and workers compensation-related claims. In the
opinion of management, the ultimate amount of liability not covered by insurance under pending litigation and claims, if any, will not have a material adverse effect on our financial position, operating results or cash flows.

In conjunction with the acquisition of Southern Frac on October 1, 2012, GFNMC entered into an agreement with the 10% noncontrolling
interest holder for a call option that provides that for the period commencing on April 1, 2013 through October 1, 2017, GFNMC may purchase the noncontrolling interest for an initial price of $1,500,000, with incremental increases of
$250,000 for each of the subsequent seven six-month periods.

The following table provides a detail of cash flows from operating activities (in thousands):

Six Months Ended December 31,

2013

2014

Cash flows from operating activities

Net income

$

6,784

$

13,520

Adjustments to reconcile net income to cash flows from operating activities:

Gain on sales and disposals of property, plant and equipment

(15

)

(96

)

Gain on sales of lease fleet

(3,591

)

(3,181

)

Unrealized foreign exchange loss

363

705

Unrealized loss (gain) on forward exchange contracts

298

(778

)

Unrealized loss (gain) on interest rate swaps and options

(158

)

11

Depreciation and amortization

11,634

19,070

Amortization of deferred financing costs

276

772

Accretion of interest

133

1,002

Share-based compensation expense

870

914

Deferred income taxes

4,206

7,408

Changes in operating assets and liabilities:

Trade and other receivables, net

773

(696

)

Inventories

(4,605

)

(14,809

)

Prepaid expenses and other

859

3,117

Trade payables, accrued liabilities and unearned revenues

(1,818

)

(6,389

)

Income taxes

(253

)

569

Net cash provided by (used in) operating activities

$

15,756

$

21,139

Note 11. Segment Reporting

Due to the acquisition of Lone Star in April 2014, the Company re-evaluated the identification of its reportable segments.
As a result of this evaluation, the Company added Lone Star as an operating segment and, along with Pac-Van, includes it as a part of the North American leasing operations. Southern Frac, which is also an operating segment, is the Companys
North American manufacturing operations and, along with the North American leasing operations, forms the North America geographic segment. These changes to our reporting segments are consistent with the way management evaluates the performance of
operations, develops strategy and allocates capital resources. All prior period disclosures have been adjusted to conform to the new presentation.

We have two geographic areas that include four operating segments; the Asia-Pacific area, consisting of the leasing operations of Royal Wolf,
and, as discussed above, North America, consisting of the combined leasing operations of Pac-Van and Lone Star, and the manufacturing operations of Southern Frac. Discrete financial data on each of the Companys products is not available and it
would be impractical to collect and maintain financial data in such a manner. In managing the Companys business, senior management focuses on primarily growing its leasing revenues and operating cash flow (EBITDA), and investing in its lease
fleet through capital purchases and acquisitions.

Intersegment net revenues related to the sales of portable liquid storage containers from
Southern Frac to the North American leasing operations totaled and $3,768,000 and $10,196,000 during the quarter ended December 31, 2013 and FY 2014 and $6,037,000 and $18,829,000 during the quarter ended December 31, 2014 and FY 2015,
respectively.

Note 12. Subsequent Events

On January 6, 2015, the Wells Fargo Credit Facility was amended and restated to, among other things, increase the
maximum borrowing capacity from $200,000,000 to $220,000,000 by adding a $20,000,000 real estate sub-facility, add GFNRC as a borrower and allow the borrowers to acquire real estate as collateral. Borrowings under the $20,000,000 real estate
sub-facility accrue interest, at the Companys option, either at the base rate, plus a range of 1.50% to 2.00%, or the LIBOR rate, plus a range of 3.0% to 3.50%. In addition, subject to certain conditions, the amount that may be borrowed under
the Wells Fargo Credit Facility may increase by $20,000,000 to a maximum of $240,000,000.

On January 9, 2015, the Company, through
Pac-Van, purchased the business of Bristlecone Ventures, LLC, doing business as Falcon Containers (Falcon Containers), for approximately $7,280,000. Falcon Containers primarily leases and sells portable storage and office
containers from its two locations in Austin and San Antonio, Texas.

On January 15, 2015, the Company announced that the Board of
Directors declared a cash dividend of $2.30 per share on the Series C Preferred Stock (see Note 3). The dividend is for the period commencing on October 31, 2014 through January 30, 2015, and is payable on February 2, 2015 to holders
of record as of January 30, 2015.

On January 27, 2015, the Company repaid, prior to maturity, $5,000,000 of the outstanding
borrowings of the Credit Suisse Term Loan.

On February 10, 2015, Royal Wolf announced an interim dividend of AUS$0.04 per RWH share
payable on April 2, 2015 to shareholders of record on March 18, 2015.

Item 2. Managements Discussion and Analysis of Financial Condition and
Results of Operations

The following discussion of our financial condition and results of operations should be read together with the
consolidated financial statements and the accompanying notes thereto, which are included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2014 filed with the Securities and Exchange Commission (SEC), as well as
the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q. This Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended. We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to known and
unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or
implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as may, should, could, would, expect, plan,
anticipate, believe, estimate, continue or the negative of such terms or other similar expressions. Risk factors that might cause or contribute to such discrepancies include, but are not limited to,
those described in our Annual Report on Form 10-K for the year ended June 30, 2014 and other SEC filings. We maintain a web site atwww.generalfinance.com that makes available, through a link to the SECs EDGAR system
website, our SEC filings.

We incorporated in Delaware on October 14, 2005 and completed our initial public offering (IPO) in April 2006. Our
primary long-term strategy and business plan are to acquire and operate rental services and specialty finance businesses in North and South America, Europe and the Asia-Pacific (or Pan-Pacific) area.

On April 7, 2014, we, through Lone Star (our indirect wholly-owned subsidiary), closed our acquisition of substantially all of the assets
and the assumption of certain of the liabilities of the affiliated companies, Lone Star Tank Rental, LP, based in Kermit, Texas, and KHM Rentals, LLC, based in Kenedy, Texas. As part of our North American leasing operations, Lone Star leases
portable liquid storage tank containers and containment products, as well as provides certain fluid management services, to the oil and gas industry in the Permian and Eagle Ford basins of Texas. Reference is made to Note 4 of Notes to Condensed
Consolidated Financial Statements for more information regarding this significant acquisition.

We have two geographic areas that include
four operating segments; the Asia-Pacific (or Pan-Pacific) area, consisting of Royal Wolf (which leases and sells storage containers, portable container buildings and freight containers in Australia and New Zealand) and North America, consisting of
Pac-Van (which leases and sells storage, office and portable liquid storage tank containers, modular buildings and mobile offices), and Lone Star (see above), which are combined to form our North American Leasing operations, and Southern
Frac (which manufactures portable liquid storage tank containers). We do business in three distinct, but related industries, mobile storage, modular space and liquid containment; which we collectively refer to as the portable services
industry. As of December 31, 2014, our two geographic leasing operations lease and sell their products through nineteen customer service centers (CSCs) in Australia, nine CSCs in New Zealand, thirty-six branch locations in the
United States and two branch locations in Canada. At that date, we had 271 and 696 employees and 41,697 and 29,101 lease fleet units in the Asia-Pacific area and North America, respectively.

Our products primarily consist of the following:

Containers

Storage Containers.
Storage containers consist of new and used shipping containers that provide a flexible, low cost alternative to warehousing, while offering greater security, convenience and immediate accessibility. Our storage products include general purpose dry
storage containers, refrigerated containers and specialty containers in a range of standard and modified sizes, designs and storage capacities. Specialty containers include blast-resistant units, hoarding units and hazardous-waste units. We also
offer storage vans, also known as storage trailers or dock-height trailers.

Freight Containers. Freight containers are specifically designed for transport of products
by road and rail. Our freight container products include curtain-side, refrigerated and bulk cargo containers, together with a range of standard and industry-specific dry freight containers. Freight containers are only offered in the Asia-Pacific
area and we consider them part of the mobile storage industry on a consolidated basis.

Portable Container Buildings and Office
Containers. Portable container buildings and office containers are either modified or specifically-manufactured containers that provide self-contained office space with maximum design flexibility. Office containers in the U.S. are oftentimes
referred to as ground level offices (GLOs).

Portable Liquid Storage Tank Containers. Portable liquid storage tank
containers are often referred to as frac tanks or frac tank containers and are manufactured steel containers with fixed steel axles for transport and use in a variety of industries; including oil and gas exploration and field
services, refinery, chemical and industrial plant maintenance, environmental remediation and field services, infrastructure building construction, marine services, pipeline construction and maintenance, tank terminals services, wastewater treatment
and waste management and landfill services. While there are a number of different sizes of tanks currently used in the market place, we are currently focusing on the more common 500-barrel capacity containers. Our products typically include features
such as guardrails, safety stairways, multiple entry ways and a sloped bottom for easy cleaning, an epoxy lining, and various feed and drain lines.

Other

Modular Buildings. Also
known as manufactured buildings, modular buildings provide customers with additional space and are often modified to customer specifications. Modular buildings range in size from 1,000 to more than 30,000 square feet and may be highly customized.

Mobile Offices. Also known as trailers or construction trailers, mobile offices are re-locatable units with aluminum or wood
exteriors on wood (or steel) frames on a steel carriage fitted with axles, allowing for an assortment of add-ons to provide comfortable and convenient temporary space solutions.

Revenues. Revenues increased $23.1 million, or 35%,
to $88.7 million in QE FY 2015 from $65.6 million in QE FY 2014. This consisted of a $27.8 million increase, or 130%, in revenues in our North American leasing operations, a decrease of $9.1 million, or 22%, in revenues in the
Asia-Pacific area and an increase of $4.4 million in manufacturing revenues from Southern Frac. Excluding the impact of Lone Star, which we acquired on April 7, 2014 and contributed revenues of $17.4 million in QE FY 2015, revenues in
our North American leasing operations increased by 49% from QE FY 2014. In Australian dollars, total revenues in the Asia-Pacific area decreased by 15%. Additionally, the average currency exchange rate of the weakening Australian dollar relative to
the U.S. dollar in QE FY 2015 versus QE FY 2014 adversely effected the translation of revenues from the Asia-Pacific area. The average currency exchange rate of one Australian dollar during QE FY 2015 was $0.85585 U.S. dollar compared to $0.92803
U.S. dollar during QE FY 2014.

Excluding Lone Star (doing business in the mining and energy sector), the North American leasing revenue
increase in QE FY 2015 from QE FY 2014 of $10.4 million was broadly across most sectors, but particularly in the mining and energy, commercial, construction and retail sectors where revenues increased between the periods by an aggregate of
$9.1 million. The revenue decrease in the Asia-Pacific area was primarily in the transport, mining, government and construction sectors, where revenues decreased by $8.6 million in QE FY 2015 from QE FY 2014.

Sales and leasing revenues represented 30% and 70% of total non-manufacturing revenues, respectively, in QE FY 2015 compared to 45% and 55% of
total non-manufacturing revenues in QE FY 2014.

Sales during QE FY 2015 amounted to $31.7 million, compared to $31.1 million
during QE FY 2014; representing an increase of $0.6 million, or 2%. This consisted of an $8.2 million decrease, or 37%, in sales in the Asia-Pacific area, an increase of $4.4 million, or 73%, in our North American leasing operations
and an increase in manufacturing sales of $4.4 million, or 163%, at Southern Frac. Overall, non-manufacturing sales decreased by a net $3.8 million, or 13%, in QE FY 2015 from QE FY 2014. The decrease in the Asia-Pacific area was comprised
of a decrease of $1.5 million ($1.7 million increase due to higher unit sales, $2.0 million decrease due to average price reductions and $1.2 million decrease due to foreign exchange movements) in the CSC operations and a
decrease of $6.7 million ($4.6 million decrease due to lower unit sales, a $2.0 million decrease due to average price decreases and a $0.1 million decrease due to foreign exchange movements) in the national accounts group. Sales
in the national accounts

group during QE FY 2014 included approximately $3.4 million (AUS$3.7 million) to one customer, a freight logistics company that operates a national rail network, in which the operating margin on
the sales contract was under 10%. In our North American leasing operations, the higher sales in QE FY 2015 versus QE FY 2014 were broadly across most sectors, but primarily in the commercial, mining and energy, government and construction sectors,
which increased by an aggregate of $3.6 million. At Southern Frac, portable liquid storage tank container sales in QE FY 2015 consisted of 196 units sold at an average sales price of approximately $36,000 per unit versus 82 units sold at an
average sales price of approximately $33,000 per unit during QE FY 2014. The increase in sales of tanks between the periods at Southern Frac was due to the increased demand from stronger drilling activity, primarily in Texas.

Leasing revenues during QE FY 2015 totaled $57.0 million, as compared to $34.5 million during QE FY 2014, representing an increase
of $22.5 million, or 65%. This consisted of an increase of $23.4 million (which includes $17.4 million from Lone Star), or 152%, in North America, and a decrease of $0.9 million, or 5%, in the Asia-Pacific area. On a local currency
basis, leasing revenues increased by 3% in the Asia-Pacific area.

In the Asia-Pacific area, average utilization in the retail and the
national accounts group operations was 86% and 81%, respectively, during QE FY 2015, an increase from 85% and 80% in QE FY 2014. The overall average utilization increased slightly in QE FY 2015 to 85% from 84% in QE FY 2014; and the average monthly
lease rate of containers was AUS$176 in QE FY 2015 versus AUS$175 in QE FY 2014. Leasing revenues in QE FY 2015 increased in Australian dollars over QE FY 2014 due primarily to the combination of slightly higher monthly lease rates and the average
monthly number of units on lease being more than 500 higher in QE FY 2015 as compared to QE FY 2014. We believe the primary reasons we are generally able to maintain high average utilization rates and increase our average units on lease and monthly
rate between periods were the generally stable economy in the Asia-Pacific area and our position as the only company with a national footprint in the mobile storage industry in Australia and New Zealand. We regularly review each local market in
which we do business to determine if local factors justify increases or decreases in lease rates and the effect these changes would have on utilization and revenues.

In our North American leasing operations, average utilization rates were 87%, 87%, 85%, 74% and 79% and average monthly lease rates were $119,
$306, $1,509, $261 and $775 for storage containers, office containers, frac tank containers, mobile offices and modular units, respectively, during QE FY 2015; as compared to 87%, 82%, 78%, 67% and 72% and average monthly lease rates were $115,
$275, $885, $243 and $838 for storage containers, office containers, frac tank containers, mobile offices and modular units in QE FY 2014, respectively. The average composite utilization rate increased to 82% in QE FY 2015 from 80% in QE FY 2014,
and the composite average monthly number of units on lease was more than 8,000 higher in QE FY 2015 as compared to QE FY 2014. The strong utilization, average monthly number of units on lease and generally higher monthly lease rates resulted
primarily from improved demand across-the-board, but particularly in the mining and energy, commercial, construction and retail sectors, which increased by an aggregate of $23.6 million (including $17.4 million from Lone Star).

Cost of Sales. Cost of sales from our lease inventories and fleet (which is the cost related to our sales revenues only and exclusive
of the line items discussed below) decreased by $4.0 million from $21.6 million during QE FY 2014 to $17.6 million during QE FY 2015, as a result of the lower sales from our lease inventories and fleet, as discussed above. However,
our gross profit percentage from these non-manufacturing sales increased to 28% in QE FY 2015 from 24% in QE FY 2014 due primarily to the adverse effect in QE FY 2014 of the lower margin on approximately $3.4 million (AUS$3.7 million) of sales to a
freight logistics customer, which was discussed above. Cost of sales from our manufactured portable liquid storage tank containers totaled $4.9 million in QE FY 2015, or approximately $25,000 per unit, versus $2.0 million in QE FY 2014, or
approximately $24,400 per unit, but our gross profit percentage increased to 31% in QE FY 2015 from over 26% in QE FY 2014.

Direct
Costs of Leasing Operations and Selling and General Expenses. As a result of our increased business activity, direct costs of leasing operations and selling and general expenses increased in absolute dollars by $13.0 million
($9.4 million of which was incurred at Lone Star), from $26.1 million during QE FY 2014 to $39.1 million during QE FY 2015. As a percentage of revenues, these costs increased to 44% during QE FY 2015 from 40% during QE FY 2014.
However, as discussed above, there were $3.4 million of sales to a freight logistics customer which, if excluded, would show these costs as a percentage of revenues in QE FY 2014 at 42%. This is comparable to QE FY 2015, particularly since
infrastructure costs in North America, as a percentage of revenues, have proportionally increased slightly in order to sustain the anticipated business growth.

Depreciation and Amortization. Depreciation and amortization increased by $3.6 million to $9.4 million in QE FY 2015 from
$5.8 million in QE FY 2014, primarily as a result of our increasing investment in the lease fleet and business acquisitions.

Interest Expense. Interest expense of $5.5 million in QE FY 2015 was $3.2 million higher than the $2.3 million in QE FY
2014, primarily in North America, which increased by $3.0 million. This was due to higher average borrowings in QE FY 2015, as compared to QE FY 2014, and the higher weighted-average interest rate of 5.4% (which does not

include the effect of the accretion of interest and amortization of deferred financing costs) in North America in QE FY 2015 versus 3.7% in QE FY 2014. This higher weighted-average interest rate
between the periods was primarily due to borrowings we made during the fourth quarter of the fiscal year ended June 30, 2014 at GFN corporate that totaled $97.0 million and bear interest rates higher than those of the current lending rates of
our combined senior credit facility for our North American leasing operations (see Note 5 of Notes to Condensed Consolidated Financial Statements). The weighted-average interest rate of 5.4% (which does not include the effect of translation,
interest rate swap contracts and options and the amortization of deferred financing costs) in the Asia-Pacific area in QE FY 2015 decreased from 5.5% in QE FY 2014 and this, along with the weakening Australian dollar relative to the U.S. dollar,
offset the comparatively higher average borrowings between the periods.

Foreign Currency Exchange and Other. The currency exchange
rate of one Australian dollar to one U.S. dollar was $0.9322 at September 30, 2013, $0.8874 at December 31, 2013, $0.8727 at September 30, 2014 and $0.8158 at December 31, 2014. In QE FY 2014 and QE FY 2015, net unrealized and
realized foreign exchange gains (losses) totaled $(414,000) and $69,000, and $(377,000) and $47,000, respectively.

Income Taxes.
Our effective income tax rate was 40.0% in QE FY 2015 and 41.8% in QE FY 2014. The effective rate is greater than the U.S. federal rate of 35% primarily because of state income taxes from the filing of tax returns in multiple U.S. states and the
effect of doing business and filing income tax returns in foreign jurisdictions. The effective tax rate in QE FY 2014 included an estimate for the effect to deferred taxes for the increase in the federal statutory rate used from 34% to 35%.

Noncontrolling Interests. Noncontrolling
interests in the Royal Wolf and Southern Frac results of operations were approximately $1.6 million and $2.0 million in QE FY 2015 and QE FY 2014, respectively, a decrease of $0.4 million.

Net Income Attributable to Common Stockholders. Net income attributable to common stockholders of $4.6 million in QE FY 2015 was
$3.0 million more than the $1.6 million in QE FY 2014, primarily as a result of greater operating profit in North America, offset somewhat by lower operating profit in the Asia-Pacific area, higher interest expense and income taxes.

The following compares our FY 2015 results of operations with our FY 2014 results of operations.

Revenues. Revenues increased $37.7 million, or 29%, to $169.1 million in FY 2015 from $131.4 million in FY 2014. This
consisted of a $50.4 million increase, or 116%, in revenues in our North American leasing operations, a decrease of $15.6 million, or 19%, in revenues in the Asia-Pacific area and an increase of $2.9 million in manufacturing revenues
from Southern Frac. Excluding the impact of Lone Star, which we acquired on April 7, 2014 and contributed revenues of $35.1 million in FY 2015, revenues in our North American leasing operations increased by 35% from FY 2014. In Australian
dollars, total revenues in the Asia-Pacific area decreased by 15%. Additionally, the average currency exchange rate of the weakening Australian dollar relative to the U.S. dollar in FY 2015 versus FY 2014 adversely effected the translation of
revenues from the Asia-Pacific area. The average currency exchange rate of one Australian dollar during FY 2015 was $0.89098 U.S. dollar compared to $0.92183 U.S. dollar during FY 2014.

Excluding Lone Star (doing business in the mining and energy sector), North American leasing revenue increase in FY 2015 from FY 2014 of $15.3
million was broadly across most sectors, but particularly in the mining and energy, commercial, construction and retail sectors, where revenues increased between the periods by an aggregate of $15.0 million. The revenue decrease in the
Asia-Pacific area was primarily in the transport, mining and government sectors, where revenues decreased by $15.8 million in FY 2015 from FY 2014.

Sales and leasing revenues represented 30% and 70% of total non-manufacturing revenues, respectively, in FY 2015 compared to 48% and 52% of
total non-manufacturing revenues in FY 2014.

Sales during FY 2015 amounted to $56.5 million, compared to $65.8 million during
FY 2014; representing a decrease of $9.3 million, or 14%. This consisted of a $16.9 million decrease, or 37%, in sales in the Asia-Pacific area, an increase of $4.7 million, or 34%, in our North American leasing operations and an
increase in manufacturing sales of $2.9 million, or 48%, at Southern Frac. Overall, non-manufacturing sales decreased by a net $12.2 million, or 20%, in FY 2015 from FY 2014. The decrease in the Asia-Pacific area was comprised of a
decrease of $1.3 million ($2.7 million increase due to higher unit sales, $3.0 million decrease due to average price reductions and $1.0 million decrease due to foreign exchange movements) in the CSC operations and a decrease of
$15.6 million ($11.4 million decrease due to

lower unit sales, a $4.1 million decrease due to average price decreases and a $0.1 million decrease due to foreign exchange movements) in the national accounts group. Sales in the
national accounts group during FY 2014 included over $11.0 million (over AUS$12.0 million) to one customer, a freight logistics company that operates a national rail network, in which the operating margin on the sales contract was under 10%. In our
North American leasing operations, the higher sales in FY 2015 versus FY 2014 were primarily due to increases in the commercial, mining and energy, government and construction sectors, which increased by an aggregate of $5.0 million. At
Southern Frac, portable liquid storage tank container sales in FY 2015 consisted of 254 units sold at an average sales price of approximately $35,800 per unit versus 176 units sold at an average sales price of approximately $34,900 per unit during
FY 2014. The increase in sales of tanks between the periods at Southern Frac was due to the increased demand from stronger drilling activity, primarily in Texas.

Leasing revenues during FY 2015 totaled $112.7 million, as compared to $65.6 million during FY 2014, representing an increase of
$47.1 million, or 72%. This consisted of an increase of $45.8 million (which includes $35.1 million from Lone Star), or 154%, in North America, and an increase of $1.3 million, or 4%, in the Asia-Pacific area. On a local currency
basis, leasing revenues increased by 7% in the Asia-Pacific area.

In the Asia-Pacific area, average utilization in the retail and the
national accounts group operations was 86% and 76%, respectively, during FY 2015, an increase from 85% and 73% in FY 2014. The overall average utilization increased slightly in FY 2015 to 83% from 82% in FY 2014; and the average monthly lease rate
of containers was AUS$178 in FY 2015 versus AUS$172 in FY 2014. Leasing revenues in FY 2015 increased in Australian dollars over FY 2014 due primarily to the combination of slightly higher monthly lease rates and the average monthly number of units
on lease being over 1,000 higher in FY 2015 as compared to FY 2014. We believe the primary reasons we are generally able to maintain high average utilization rates and increase our average units on lease and monthly rate between periods were the
generally stable economy in the Asia-Pacific area and our position as the only company with a national footprint in the mobile storage industry in Australia and New Zealand. We regularly review each local market in which we do business to determine
if local factors justify increases or decreases in lease rates and the effect these changes would have on utilization and revenues.

In
our North American leasing operations, average utilization rates were 83%, 86%, 86%, 74% and 78% and average monthly lease rates were $116, $300, $1,540, $256 and $783 for storage containers, office containers, frac tank containers, mobile offices
and modular units, respectively, during FY 2015; as compared to 84%, 81%, 82%, 68% and 72% and average monthly lease rates were $114, $273, $905, $241 and $824 for storage containers, office containers, frac tank containers, mobile offices and
modular units in FY 2014, respectively. The average composite utilization rate increased to 81% in FY 2015 from 79% in FY 2014, and the composite average monthly number of units on lease was over 6,900 higher in FY 2015 as compared to FY 2014. The
strong utilization, average monthly number of units on lease and generally higher monthly lease rates resulted primarily from improved demand across-the-board, but particularly in the mining and energy, commercial, construction and retail sectors,
which increased by an aggregate of $45.5 million (including $35.1 million from Lone Star).

Cost of Sales. Cost of sales from
our lease inventories and fleet (which is the cost related to our sales revenues only and exclusive of the line items discussed below) decreased by $12.3 million from $46.4 million during FY 2014 to $34.1 million during FY 2015, as a
result of the lower sales from our lease inventories and fleet, as discussed above. However, our gross profit percentage from these non-manufacturing sales increased to 28% in FY 2015 from 22% in FY 2014 due primarily to the adverse effect in FY
2014 of the lower margin on over $11.0 million (over AUS$12.0 million) of sales to a freight logistics customer, which was discussed above. Cost of sales from our manufactured portable liquid storage tank containers totaled $6.0 million in FY
2015, or approximately $26,000 per unit, versus $4.6 million in FY 2014, or approximately $24,000 per unit, but our gross profit percentage increased to 34% in FY 2015 from 26% in FY 2014.

Direct Costs of Leasing Operations and Selling and General Expenses. As a result of our increased business activity, direct costs of
leasing operations and selling and general expenses increased in absolute dollars by $25.0 million ($17.8 million of which was incurred at Lone Star), from $52.2 million during FY 2014 to $77.2 million during FY 2015. As a
percentage of revenues, these costs increased to 46% during FY 2015 from 40% during FY 2014. However, as discussed above, there were over $11.0 million of sales to a freight logistics customer which, if excluded, would show these costs as a
percentage of revenues in FY 2014 at 3%. This is comparable to FY 2015, particularly since infrastructure costs in North America, as a percentage of revenues, have proportionally increased slightly in order to sustain the anticipated business
growth.

Depreciation and Amortization. Depreciation and amortization increased by $7.3 million to $18.6 million in FY
2015 from $11.3 million in FY 2014, primarily as a result of our increasing investment in the lease fleet and business acquisitions.

Interest Expense. Interest expense of $10.8 million in FY 2015 was $6.1 million
higher than the $4.7 million in FY 2014, primarily in North America, which increased by $5.8 million. This was due to higher average borrowings in FY 2015, as compared to FY 2014, and the higher weighted-average interest rate of 5.5%
(which does not include the effect of the accretion of interest and amortization of deferred financing costs) in North America in FY 2015 versus 3.8% in FY 2014. This higher weighted-average interest rate between the periods was primarily due to
borrowings we made during the fourth quarter of the fiscal year ended June 30, 2014 at GFN corporate that totaled $97.0 million and bear interest rates higher than those of the current lending rates of our combined senior credit facility for
our North American leasing operations. The weighted-average interest rate of 5.4% (which does not include the effect of translation, interest rate swap contracts and options and the amortization of deferred financing costs) in the Asia-Pacific area
in FY 2015 decreased from 5.7% in FY 2014 and this, along with the weakening Australian dollar relative to the U.S. dollar, offset the comparatively higher average borrowings between the periods.

Foreign Currency Exchange and Other. The currency exchange rate of one Australian dollar to one U.S. dollar was $0.9146 at
June 30, 2013, $0.8874 at December 31, 2013, $0.9439 at June 30, 2014 and $0.8158 at December 31, 2014. In FY 2014 and FY 2015, net unrealized and realized foreign exchange gains (losses) totaled $(363,000) and $101,000, and
$(705,000) and $18,000, respectively.

Income Taxes. Our effective income tax rate was 40.0% in FY 2015 and 41.8% in FY 2014. The
effective rate is greater than the U.S. federal rate of 35% primarily because of state income taxes from the filing of tax returns in multiple U.S. states and the effect of doing business and filing income tax returns in foreign jurisdictions. The
effective tax rate in FY 2014 included an estimate for the effect to deferred taxes for the increase in the federal statutory rate used from 34% to 35%.

Noncontrolling Interests. Noncontrolling interests in the Royal Wolf and Southern Frac results of
operations were approximately $3.4 million and $3.1 million in FY 2015 and FY 2014, respectively, an increase of $0.3 million, reflecting the greater profitability of both operating units between the periods.

Net Income Attributable to Common Stockholders. Net income attributable to common stockholders of $8.3 million in FY 2015 was
$6.3 million more than the $2.0 million in FY 2014, primarily as a result of greater operating profit in both North America and the Asia-Pacific area, offset somewhat by higher interest expense and income taxes.

Measures not in Accordance with Generally Accepted Accounting Principles in the United States (U.S. GAAP)

Earnings before interest, income taxes, impairment, depreciation and amortization and other non-operating costs and income (EBITDA)
and adjusted EBITDA are supplemental measures of our performance that are not required by, or presented in accordance with, U.S. GAAP. These measures are not measurements of our financial performance under U.S. GAAP and should not be considered as
alternatives to net income, income from operations or any other performance measures derived in accordance with U.S. GAAP or as an alternative to cash flow from operating, investing or financing activities as a measure of liquidity. Adjusted EBITDA
is a non-U.S. GAAP measure. We calculate adjusted EBITDA to eliminate the impact of certain items we do not consider to be indicative of the performance of our ongoing operations. You are encouraged to evaluate each adjustment and whether you
consider each to be appropriate. In addition, in evaluating adjusted EBITDA, you should be aware that in the future, we may incur expenses similar to the expenses excluded from our presentation of adjusted EBITDA. Our presentation of adjusted EBITDA
should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. We present adjusted EBITDA because we consider it to be an important supplemental measure of our performance and because we believe
it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry, many of which present EBITDA and a form of adjusted EBITDA when reporting their results. Adjusted EBITDA has
limitations as an analytical tool, and should not be considered in isolation, or as a substitute for analysis of our results as reported under U.S. GAAP. Because of these limitations, adjusted EBITDA should not be considered as a measure of
discretionary cash available to us to invest in the growth of our business or to reduce our indebtedness. We compensate for these limitations by relying primarily on our U.S. GAAP results and using adjusted EBITDA only supplementally. The following
table shows our adjusted EBITDA and the reconciliation from net income (in thousands):

Our business is capital intensive, so from an operating level we focus primarily on EBITDA and
adjusted EBITDA to measure our results. These measures provide us with a means to track internally generated cash from which we can fund our interest expense and fleet growth objectives. In managing our business, we regularly compare our adjusted
EBITDA margins on a monthly basis. As capital is invested in our established branch (or CSC) locations, we achieve higher adjusted EBITDA margins on that capital than we achieve on capital invested to establish a new branch, because our fixed costs
are already in place in connection with the established branches. The fixed costs are those associated with yard and delivery equipment, as well as advertising, sales, marketing and office expenses. With a new market or branch, we must first fund
and absorb the start-up costs for setting up the new branch facility, hiring and developing the management and sales team and developing our marketing and advertising programs. A new branch will have low adjusted EBITDA margins in its early years
until the number of units on rent increases. Because of our higher operating margins on incremental lease revenue, which we realize on a branch-by-branch basis, when the branch achieves leasing revenues sufficient to cover the branchs fixed
costs, leasing revenues in excess of the break-even amount produce large increases in profitability and adjusted EBITDA margins. Conversely, absent significant growth in leasing revenues, the adjusted EBITDA margin at a branch will remain relatively
flat on a period by period comparative basis.

Liquidity and Financial Condition

Though we have raised capital at the corporate level to primarily assist in the funding of acquisitions and lease fleet expenditures, as well
as for general purposes, our operating units substantially fund their operations through secured bank credit facilities that require compliance with various covenants. These covenants require our operating units to, among other things, maintain
certain levels of interest or fixed charge coverage, EBITDA (as defined), utilization rate and overall leverage.

Leasing
Operations

Effective May 8, 2014, Royal Wolf refinanced the Australia and New Zealand Banking Group Limited (ANZ)
senior credit facility, which was secured by substantially all of the assets of the Companys Australian and New Zealand subsidiaries to, among other things, increase the maximum borrowing capacity to $142,765,000 (AUS$175,000,000), add
Commonwealth Bank of Australia (CBA) through a common terms deed arrangement with ANZ and generally improve the financial covenants (the ANZ/CBA Credit Facility). Under the common deed arrangement of the ANZ/CBA Credit
Facility, ANZs proportionate share of the borrowing capacity is $85,659,000 (AUS$105,000,000) and CBAs proportionate share is $57,106,000 (AUS$70,000,000). The ANZ/CBA Credit Facility has $101,975,000 (AUS$125,000,000) maturing on
July 31, 2017 (Facility A), and $40,790,000 (AUS$50,000,000) maturing on July 31, 2019 (Facility B).

Effective February 7,
2014, Pac-Van amended its $120,000,000 facility led by Wells Fargo Bank, National Association (Wells Fargo) that also included HSBC Bank USA, NA (HSBC), and the Private Bank and Trust Company to, among other things, increase
the maximum borrowing capacity from $120,000,000 to $200,000,000 and add two new lenders (Capital One Business Credit Corp. and OneWest Bank N.A.) to the syndicate (the Wells Fargo Credit Facility). Further, on April 7, 2014, in
conjunction with the acquisition of Lone Star, and on May 23, 2014, the Wells Fargo Credit Facility was amended and restated to, among other things, include Lone Star as a co-borrower and to allow for the funding of the interest requirements of
the public offering of unsecured senior notes (see below). The Wells Fargo Credit Facility matures on September 7, 2017.

The Wells
Fargo Credit Facility effectively not only finances our North American leasing operations, but also the funding requirements for the Series C Preferred Stock, the term loan with Credit Suisse AG, Singapore Branch and the public offering of unsecured
senior notes. The maximum amount of intercompany dividends that Pac-Van and Lone Star are allowed to pay in each fiscal year to GFN for the funding requirements of GFNs senior and other debt and the Series C Preferred Stock are (a) the
lesser of $5,000,000 for the Series C Preferred Stock or the amount equal to the dividend

rate of the Series C Preferred Stock and its aggregate liquidation preference and the actual amount of dividends required to be paid to the Series C Preferred Stock; (b) the lesser of
$3,125,000 for the term loan with Credit Suisse AG, Singapore Branch or the actual annual interest to be paid; and (c) $6,120,000 for the public offering of unsecured senior notes or the actual amount of annual interest required to be paid;
provided that (i) the payment of such dividends does not cause a default or event of default; (ii) each of Pac-Van and Lone Star is solvent; (iii) excess availability, as defined, is $5,000,000 or more under the Wells Fargo Credit
Facility; and (iv) the fixed charge coverage ratio, as defined, will be greater than 1.25 to 1.00 and the dividends are paid no earlier than ten business days prior to the date they are due.

On January 6, 2015, the Wells Fargo Credit Facility was amended and restated to, among other things, increase the maximum borrowing
capacity from $200,000,000 to $220,000,000 by adding a $20,000,000 real estate sub-facility, add GFNRC as a borrower and allow the borrowers to acquire real estate as collateral.

Manufacturing Operations

Southern Frac has a senior secured credit facility with Wells Fargo (the Wells Fargo SF Credit Facility). The Wells Fargo SF Credit
Facility, as amended, provides for (i) a senior secured revolving line of credit under which Southern Frac may borrow, subject to the terms of a borrowing base, as defined, up to $12,000,000 with a three-year maturity; (ii) a combined
$860,000 equipment and capital expenditure term loan (the Restated Equipment Term Loan), which fully amortizes over 48 months commencing July 1, 2013; and (iii) a $1,500,000 term loan (the Term Loan B), which fully
amortizes over 18 months, commencing May 1, 2013.

Corporate

On March 31, 2014, we entered into a $25,000,000 facility agreement with Credit Suisse AG, Singapore Branch (Credit Suisse Term
Loan) as part of the financing for the acquisition of Lone Star and, on April 3, 2014, we borrowed the $25,000,000 available to it. The Credit Suisse Term Loan provides that the amount borrowed will bear interest at LIBOR plus
7.50% per year, will be payable quarterly, and that all principal and interest will mature two years from the date that we borrowed the $25,000,000. In addition, the Credit Suisse Term Loan is secured by a first ranking pledge over all shares
of RWH owned by GFN U.S., requires a certain coverage maintenance ratio in U.S. dollars based on the value of the RWH shares and, among other things, that an amount equal to six-months interest be deposited in an interest reserve account pledged to
secure repayment of all amounts borrowed.

On June 18, 2014, we completed the sale of unsecured senior notes (the Senior
Notes) in a public offering for an aggregate principal amount of $72,000,000, which represented 100% of the principal amount and included the underwriters full exercise of their over-allotment option of $9,000,000. Net proceeds were
$69,069,000, after deducting underwriting discounts and offering costs of approximately $2,931,000. The Senior Notes were issued in minimum denominations of $25 and integral multiples of $25 in excess thereof and pursuant to the First Supplemental
Indenture (the First Supplemental Indenture) dated as of June 18, 2014 by and between us and Wells Fargo, as trustee (the Trustee). The First Supplemental Indenture supplements the Indenture entered into by and between
us and the Trustee dated as of June 18, 2014 (the Base Indenture and, together with the First Supplemental Indenture, the Indenture). The Senior Notes bear interest at the rate of 8.125% per annum, mature on
July 31, 2021 and are not subject to any sinking fund. Interest on the Senior Notes is payable quarterly in arrears on January 31, April 30, July 31 and October 31, commencing on July 31, 2014. We used
$68,600,000 of the net proceeds (plus an additional $4,000,000 of GFN corporate cash on hand) to reduce indebtedness at Pac-Van and Lone Star under the Wells Fargo Credit Facility, pursuant to the requirement that at least 80% of the gross proceeds,
or $57,600,000, be used for that purpose in order to permit the payment of intercompany dividends by Pac-Van and Lone Star to GFN to fund the interest requirements of the Senior Notes.

The Senior Notes rank equally in right of payment with all of our existing and future unsecured senior debt and senior in right of payment to
all of its existing and future subordinated debt. The Senior Notes are effectively subordinated to any of our existing and future secured debt, to the extent of the value of the assets securing such debt. The Senior Notes are structurally
subordinated to all existing and future liabilities of our subsidiaries and are not guaranteed by any of our subsidiaries. We may, at our option, prior to July 31, 2017, redeem the Senior Notes in whole or in part upon the payment of 100% of
the principal amount of the Senior Notes being redeemed plus any additional amount required by the Indenture. In addition, we may from time to time redeem up to 35% of the aggregate outstanding principal amount of the Senior Notes before
July 31, 2017 with the net cash proceeds from certain equity offerings at a redemption price of 108.125% of the principal amount plus accrued and unpaid interest. If we sell certain of our assets or experience specific kinds of changes in
control, as defined, we must offer to purchase the Senior Notes.

We may, at our option, at any time and from time to time, on or after
July 31, 2017, redeem the Senior Notes in whole or in part. The Senior Notes will be redeemable at a redemption price initially equal to 106.094% of the principal amount of the Senior Notes (and which declines on each year on July 31) plus
accrued and unpaid interest to the date of redemption. On and after any redemption date, interest will cease to accrue on the redeemed Senior Notes.

As of December 31, 2014, our required principal and other obligations payments for the
twelve months ending December 31, 2015 and the subsequent three twelve-month periods are as follows (in thousands):

Twelve Months Ending December 31,

2015

2016

2017

2018

ANZ/CBA Credit Facility

$



$



$

100,781

$



Wells Fargo Credit Facility





135,411



Wells Fargo SF Credit Facility

1,168

215

108



Credit Suisse Term Loan



25,000





Senior Notes









Other

4,061

3,797

1,476

1,582

$

5,229

$

29,012

$

237,776

$

1,582

Reference is made to Note 5 of Notes to Condensed Consolidated Financial Statements for further discussion of
our senior and other debt.

We intend to continue utilizing our operating cash flow and net borrowing capacity primarily to expanding our
container sale inventory and lease fleet through both capital expenditures and accretive acquisitions; as well as paying dividends on the Series C Preferred Stock, if and when declared by our Board of Directors.

We currently do not pay a dividend on our common stock and do not intend on doing so in the foreseeable future.

Cash Flow for FY 2015 Compared to FY 2014

Our business is capital intensive, and we acquire leasing assets before they generate revenues, cash flow and earnings. These leasing assets
have long useful lives and require relatively minimal maintenance expenditures. Most of the capital we deploy into our leasing business historically has been used to expand our operations geographically, to increase the number of units available for
lease at our branch and CSC locations and to add to the breadth of our product mix. Our operations have generally generated annual cash flow which would include, even in profitable periods, the deferral of income taxes caused by accelerated
depreciation that is used for tax accounting.

As we discussed above, our principal source of capital for operations consists of funds
available from the senior secured credit facilities at our operating units. We also finance a smaller portion of capital requirements through finance leases and lease-purchase contracts. Supplemental information pertaining to our consolidated
sources and uses of cash is presented in the table below (in thousands):

Six Months Ended December 31,

2013

2014

Net cash provided by operating activities

$

15,756

$

21,139

Net cash used in investing activities

$

(51,996

)

$

(82,600

)

Net cash provided by financing activities

$

35,004

$

63,466

Operating activities. Our operations provided net cash flow of $21.1 million during FY 2015, an
increase of $5.3 million from the $15.8 million of operating cash flow provided during FY 2014. Net income of $13.5 million in FY 2015 was $6.7 million higher than the net income of $6.8 million in FY 2014, but this increase in operating cash
flows was more than offset by a reduction of $13.2 million in the management of operating assets and liabilities in FY 2015 when compared to FY 2014. In FY 2015 and FY 2014, operating cash flows were reduced by $18.2 million and $5.0 million,
respectively. In addition, net unrealized gains and losses from foreign exchange and derivative instruments (see Note 6 of Notes to Condensed Consolidated Financial Statements), which affect operating results but are non-cash add-backs for cash flow
purposes, caused a net decrease to operating cash flows by $0.1 million in FY 2015 versus a net increase of $0.5 million in FY 2014; or a net decrease of $0.6 million between the periods. However, our operating cash flows in FY 2015 increased by
$8.8 million over FY 2014 as a result of larger non-cash adjustments of depreciation and amortization (including amortization of deferred financing costs and accretion of interest). Depreciation, amortization and accretion of interest totaled $20.8
million in FY 2015 versus $12.0 million in FY 2014. In both periods, operating cash flows benefitted from the deferral of income taxes, which totaled $7.4 million in FY 2015 and $4.2 million in FY 2014. Historically, operating cash flows are
typically enhanced by the deferral of most income taxes due to the rapid tax depreciation rate of our fixed assets and available net operating loss carryforwards. Additionally, in both FY 2015 and FY 2014, operating cash flows were reduced by gains
on the sales of lease fleet of $3.2 million and $3.6 million, respectively, and enhanced by non-cash share-based compensation charges of $0.9 million.

Investing Activities. Net cash used by investing activities was $82.6 million during
FY 2015, as compared to $52.0 million during FY 2014, an increase of $30.6 million. Purchases of property, plant and equipment, or rolling stock, were $13.3 million (which included a real estate purchase in the Asia-Pacific area totaling $9.1
million) in FY 2015 and $2.9 million FY 2014, an increase of $10.4 million; and net capital expenditures of lease fleet (purchases, net of proceeds from sales of lease fleet) were $43.8 million in FY 2015 as compared to $33.4 million in FY 2014,
also an increase of $10.4 million. The increase in FY 2015 net capital expenditures from FY 2014 was due primarily to container lease fleet purchases of $36.5 million in FY 2015 in North America, as compared to $17.7 million in FY 2014, an increase
of $18.8 million; whereas net capital expenditures in the Pan Pacific totaled $7.3 million in FY 2015 versus $15.7 million in FY 2014, a decrease of $8.4 million. The amount of cash that we use during any period in investing activities is almost
entirely within managements discretion and we have no significant long-term contracts or other arrangements pursuant to which we may be required to purchase at a certain price or a minimum amount of goods or services. In FY 2015, we made four
business acquisitions (one in the Pan Pacific and three in North America) for cash totaling $25.4 million (see Note 4 of Notes to Condensed Consolidated Financial Statements), as compared to six acquisitions (three in the Pan Pacific and three in
North America) in FY 2014 for cash totaling $15.7 million; an increase of $9.7 million between the periods.

Financing Activities.
Net cash provided by financing activities was $63.5 million during FY 2015, as compared to $35.0 million provided during FY 2014, an increase of $28.5 million. In FY 2015 and FY 2014, cash provided from financing activities included net borrowings
of $70.0 million and $39.4 million, respectively, on existing credit facilities to primarily fund our increasing investment in the container lease fleet and business acquisitions. However, cash was used in FY 2015 and FY 2014 to pay preferred stock
dividends of $1.8 million, and $1.7 million, respectively, on primarily our Series C Preferred Stock; and, additionally, in FY 2015 and FY 2014, cash was used to purchase $3.4 million and $0.3 million, respectively, of RWH capital stock in the open
market, of which a net $0.9 million and $0.3 million, respectively, was purchased by Royal Wolf for eventual issuance to key employees under its Long Term Incentive Plan (see Note 8 of Notes to Condensed Consolidated Financial Statements). In both
FY 2015 and FY 2014, Royal Wolf paid capital stock dividends of over $2.3 million to noncontrolling interests (see Note 3 of Notes to Condensed Consolidated Financial Statements).

Asset Management

Receivables and
inventories were $65.8 million and $41.9 million at December 31, 2014 and $61.5 million and $27.4 million at June 30, 2014, respectively. At December 31, 2014, days sales outstanding (DSO) in trade receivables were 38
days and 67 days in the Asia-Pacific area and in our North American leasing operations, as compared to 43 days and 67 days at June 30, 2014, respectively. The higher DSO in our North American leasing operations was primarily due to the longer
payment lag by our oil and gas customers, which is customary in the industry. Effective asset management is always a significant focus as we strive to apply appropriate credit and collection controls and maintain proper inventory levels to enhance
cash flow and profitability.

The net book value of our total lease fleet increased to $418.0 million at December 31, 2014 from
$396.6 million at June 30, 2014. At December 31, 2014, we had 70,798 units (20,427 units in retail operations in Australia, 10,961 units in national account group operations in Australia, 10,309 units in New Zealand, which are considered
retail; and 29,101 units in North America) in our lease fleet, as compared to 61,597 units (20,056 units in retail operations in Australia, 10,610 units in national account group operations in Australia, 9,712 units in New Zealand, which are
considered retail; and 21,219 units in North America) at June 30, 2014. At those dates, 59,458 units (16,942 units in retail operations in Australia, 9,554 units in national account group operations in Australia, 9,293 units in New Zealand,
which are considered retail; and 23,669 units in North America); and 50,050 units (16,624 units in retail operations in Australia, 7,704 units in national account group operations in Australia, 8,892 units in New Zealand, which are considered
retail; and 16,830 units in North America) were on lease, respectively.

In the Asia-Pacific area, the lease fleet was comprised of 36,929
storage and freight containers and 4,768 portable building containers at December 31, 2014; and 35,990 storage and freight containers and 4,388 portable building containers at June 30, 2014. At those dates, units on lease were comprised of
32,310 storage and freight containers and 3,479 portable building containers; and 29,800 storage and freight containers and 3,420 portable building containers, respectively.

We do not maintain any off-balance sheet transactions, arrangements, obligations or other relationships with unconsolidated entities or others
that are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

Seasonality

Although demand from certain
customer segments can be seasonal, our operations as a whole are not seasonal to any significant extent. We experience a reduction in sales volumes at Royal Wolf during Australias summer holiday break from mid-December to the end of January,
followed by February being a short working day month. However, this reduction in sales typically is counterbalanced by the increased lease revenues derived from the removals or moving and storage industry, which experiences its seasonal peak of
personnel relocations during this same summer holiday break. Demand from some of Pac-Vans customers can be seasonal, such as in the construction industry, which tends to increase leasing activity in the first and fourth quarters; while
customers in the retail industry tend to lease more units in the second quarter. Our business at Lone Star and Southern Frac, which is significantly derived from the oil and gas industry, may decline in our second quarter months of November and
December and our third quarter months of January and February. These months may have lower activity in parts of the country where inclement weather may delay, or suspend, customer projects. The impact of these delays may be to decrease the number of
frac tank containers on lease until companies are able to resume their projects when weather improves.

Impact of Inflation

We believe that inflation has not had a material effect on our business. However, during periods of rising prices and, in particular when the
prices increase rapidly or to levels significantly higher than normal, we may incur significant increases in our operating costs and may not be able to pass price increases through to our customers in a timely manner, which could harm our future
results of operations.

Critical Accounting Estimates

Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which
have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. On an ongoing basis, we
re-evaluate all of our estimates. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying
values of assets and liabilities that are not readily apparent from other sources. Actual results may materially differ from these estimates under different assumptions or conditions as additional information becomes available in future periods. We
believe the following are the more significant judgments and estimates used in the preparation of our consolidated financial statements.

We are required to estimate the collectability of our trade receivables. Accordingly, we maintain allowances for doubtful accounts for
estimated losses that may result from the inability of our customers to make required payments. On a recurring basis, we evaluate a variety of factors in assessing the ultimate realization of these receivables, including the current
credit-worthiness of our customers, days sales outstanding trends, a review of historical collection results and a review of specific past due receivables. If the financial condition of our customers were to deteriorate, resulting in an impairment
of their ability to make payments, additional allowances may be required, resulting in decreased net income. To date, uncollectible accounts have been within the range of our expectations.

We lease and sell storage, building, office and portable liquid storage tank containers, modular buildings and mobile offices to our
customers. Leases to customers generally qualify as operating leases unless there is a bargain purchase option at the end of the lease term. Revenue is recognized as earned in accordance with the lease terms established by the lease agreements and
when collectability is reasonably assured. Revenue from sales of equipment is recognized upon delivery and when collectability is reasonably assured, while revenue from the sales of manufactured units are recognized when title and risk of loss
transfers to the purchaser, generally upon shipment. Certain arrangements to sell units under long-term construction-type sales contracts are accounted for under the percentage of completion method. Under this method, income is recognized in
proportion to the incurred costs to date under the contract to estimated total costs.

We have a fleet of storage, portable building,
office and portable liquid storage tank containers, mobile offices, modular buildings and steps that we lease to customers under operating lease agreements with varying terms. The lease fleet (or lease or rental equipment) is recorded at cost and
depreciated on the straight-line basis over the estimated useful life (5  20 years), after the date the units are put in service, down to their estimated residual values (up to 70% of cost).

In our opinion, estimated residual values are at or below net realizable values. We periodically review these depreciation policies in light of various factors, including the practices of the
larger competitors in the industry, and our own historical experience.

For the issuances of stock options, we follow the fair value
provisions of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 718, Compensation  Stock Compensation. FASB ASC Topic 718 requires recognition of employee share-based
compensation expense in the statements of income over the vesting period based on the fair value of the stock option at the grant date. The pricing model we use for determining fair values of the purchase option is the Black-Scholes Pricing Model.
Valuations derived from this model are subject to ongoing internal and external verification and review. The model uses market-sourced inputs such as interest rates, market prices and volatilities. Selection of these inputs involves
managements judgment and may impact net income. In particular, prior to July 1, 2009, we used volatility rates based upon a sample of comparable companies in our industry and we now use a volatility rate based on the performance of our
common stock, which yields a higher rate. In addition we use a risk-free interest rate, which is the rate on U.S. Treasury instruments, for a security with a maturity that approximates the estimated remaining expected term of the stock option.

We account for goodwill in accordance with FASB ASC Topic 350, Intangibles  Goodwill and Other. FASB ASC Topic 350 prohibits the
amortization of goodwill and intangible assets with indefinite lives and requires these assets be reviewed for impairment when events or circumstances indicate these assets might be impaired. We operate two reportable segments that include four
operating units (Royal Wolf, Pac-Van, Lone Star and Southern Frac) and our goodwill was allocated between these four reporting units. We performed an annual impairment test on goodwill at year end using the quantitative two-step process under FASB
ASC Topic 350. The first step is a screen for potential impairment, while the second step measures the amount of the impairment, if any. Effective July 1, 2012, we adopted the new qualitative assessment now allowable under ASC Topic 350. It
will no longer be required for us to calculate the fair value of a reporting unit unless a determination is made based on a qualitative assessment that it is more likely than not (i.e., greater than 50%) that the fair value of the reporting unit is
less than its carrying amount. However, if we do determine that fair value is less than the carrying amount, the existing quantitative calculations in steps one and two under ASC Topic 350 continue to apply. Some factors we consider important in
making this determination include (1) significant underperformance relative to historical, expected or projected future operating results; (2) significant changes in the manner of our use of the acquired assets or the strategy for our
overall business; (3) significant changes during the period in our market capitalization relative to net book value; and (4) significant negative industry or general economic trends. If we did determine that fair value is likely less than
the carrying amount, the quantitative two-step impairment test process discussed above would be applied. As of December 31, 2014, we determined that it was not likely that the fair values of the goodwill of our operating units were less than
their respective carrying amounts.

Intangible assets include those with indefinite (trademark and trade name) and finite (primarily
customer base and lists, non-compete agreements and deferred financing costs) useful lives. Customer base and lists and non-compete agreements are amortized on the straight-line basis over the expected period of benefit which range from one to ten
years. Costs to obtaining long-term financing are deferred and amortized over the term of the related debt using the straight-line method. Amortizing the deferred financing costs using the straight-line method does not produce significantly
different results than that of the effective interest method. Prior to July 1, 2012, we reviewed intangibles (those assets resulting from acquisitions) annually for impairment using historical cash flows and other relevant facts and
circumstances as the primary basis for its estimates of future cash flows. This process required the use of estimates and assumptions, which are subject to a high degree of judgment. Effective July 1, 2012, we adopted the new qualitative
factors now allowable under ASC Topic 350. If we determine, based on a qualitative assessment, that it is more likely than not (i.e., greater than 50%) that fair value is not impaired, then no further testing is necessary. However, if we determine
that fair value is less than the carrying amount, then the existing quantitative calculations under ASC Topic 350 continue to apply. As of December 31, 2014, we determined that it was not likely that the fair values of intangible assets
were less than their carrying amounts.

In preparing our consolidated financial statements, we recognize income taxes in each of the
jurisdictions in which we operate. For each jurisdiction, we estimate the actual amount of taxes currently payable or receivable as well as deferred tax assets and liabilities attributable to temporary differences between the financial statement
carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which these temporary differences
are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance would be provided for those deferred
tax assets for which it is more likely than not that the related benefits will not be realized. In determining the amount of the valuation allowance, we consider estimated future taxable income as well as feasible tax planning strategies in each
jurisdiction. If we determine that we will not realize all or a portion of our deferred tax assets, we would increase our valuation allowance with a charge to income tax expense or offset goodwill if the deferred tax asset was acquired in a business
combination. Conversely, if we determine that we will ultimately be able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance would be reduced with
a credit to income tax expense except if the valuation allowance was created in conjunction with a tax asset in a business combination.

Reference is made to Note 2 of Notes to Condensed Consolidated Financial Statements for a further
discussion of our significant accounting policies.

Impact of Recently Issued Accounting Pronouncements

Reference is made to Note 2 of Notes to Condensed Consolidated Financial Statements for a discussion of recently issued accounting
pronouncements that could potentially impact us.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Market risk is the sensitivity of income to changes in interest rates, foreign exchanges and other market-driven rates or prices.
Exposure to interest rates and currency risks arises in the normal course of our business and we may use derivative financial instruments to hedge exposure to fluctuations in foreign exchange rates and interest rates. We believe we have no material
market risks to our operations, financial position or liquidity as a result of derivative activities, including forward-exchange contracts.

Reference is made to Note 6 of Notes to Condensed Consolidated Financial Statements for a discussion of financial instruments.

Item 4. Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in reports we file and
submit under the Securities Exchange Act of 1934, as amended (Exchange Act), is recorded, processed, summarized and reported within the time periods specified in accordance with SEC guidelines and that such information is communicated to
management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure based on the definition of disclosure controls and procedures in Rules 13a-15(e) and 15d-15(e) of the
Exchange Act. In designing and evaluating our disclosure controls and procedures, we recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control
objectives and that our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures in reaching that level of reasonable assurance.

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we
evaluated the effectiveness of our disclosure controls and procedures, as required by Exchange Act Rule 13a-15(b), as of the end of the period covered by this report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer
concluded that our disclosure controls and procedures were effective at the reasonable assurance level. There were no changes in our internal control over financial reporting during the quarter ended December 31, 2014 that have materially
affected, or are reasonably likely to materially affect, our internal control over financial reporting.

In evaluating our forward-looking statements, readers should specifically consider risk factors that may cause actual
results to vary from those contained in the forward-looking statements. Risk factors associated with our business are included, but not limited to, our Annual Report on Form 10-K for the year ended June 30, 2014, as filed with the SEC on
September 12, 2014 (Annual Report) and other subsequent filings with the SEC, including the following:

Demand for
a substantial portion of our leasing and the majority of our manufacturing services in North America is, to a certain degree, dependent on the levels of expenditures by the oil and gas industry and can fluctuate significantly in a short period of
time. A substantial or an extended decline in oil and gas prices could result in lower expenditures by the oil and gas industry, which could have a material adverse effect on our financial condition, results of operations and cash flows.

Demand for a substantial portion of our leasing and the majority of our manufacturing services in North America depends, to a certain
degree, on the level of expenditures by the oil and gas industry for the exploration, development and production of oil and natural gas reserves and can fluctuate significantly in a short period of time. These expenditures are generally dependent on
the industrys view of current and future oil and natural gas prices and are sensitive to the industrys view of future economic growth and the resulting impact on demand for oil and natural gas. Declines, as well as anticipated declines,
in oil and gas prices could also result in project modifications, delays or cancellations, general business disruptions, and delays in payment of, or nonpayment of, amounts that are owed to us. These effects could have a material adverse effect on
our financial condition, results of operations and cash flows.

The oil and gas industry has historically experienced volatile prices for
oil and gas and periodic downturns, which have been characterized by diminished demand for oilfield services and downward pressure vendor prices charged. A significant downturn in the oil and gas industry could result in a reduction in demand for
our services and could adversely affect our financial condition, results of operations and cash flows.

Fifth Amendment to Credit and Security Agreement dated December 3, 2014 among Wells Fargo Bank, National Association, Southern Frac, the Company and GFNMC (incorporated by reference to Registrants Form 8-K filed
December 5, 2014)

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